AUSTRALIA’S MOBILE DECADE

10 YEARS OF CONSUMER INSIGHTS INTO MOBILE USE AND : 2005-2015

Managed by the Australian Mobile Telecommunications Association FOREWORD

Over the past decades, Mobile phones are enabling in so many ways, and yet as one of the mobiles and smart symbolic products of 21st century life, they also personally connect us to the challenges for people and planet which are presented by our phones have evolved to consumption and use of technology. become a ubiquitous part This can range from the individual need for digital down-time, to the of modern life; helping challenge of poor labour and environmental practices along the supply us speak to each other, chain, to the need to overcome both resource scarcity and growing rates of find our way, access e- generation. and share images and Effective is an essential part of transitioning ourselves information for both as consumers, and collectively as a society, to sustainable patterns of EXECUTIVE work and leisure. consumption and production. As a voluntary, not-for-profit industry initiative, MobileMuster is to be commended in this regard on a decade of leadership in product stewardship. The importance of responsible consumption and production has been SUMMARY recently highlighted through its inclusion as one of the seventeen United Nation’s Sustainable Development Goals. Responsible consumption and production, and indeed responsible prosperity more generally, involves not only technical and policy innovation, but also deeper insights into consumer behaviour. This spans patterns of ownership, awareness of how to recycle, Australians have embraced mobile technology to considering how to overcome hoarding behaviours which lock-up valuable resources by storing mobiles in bottom drawers instead of recycling. since 1987 when the first official call was made using an analogue . The relentless Ten years of research and consumer education by AMTA presented in this report, provides a unique body of knowledge that can inform and lead growth in mobile services and evolution from bulky the ongoing evolution of stewardship for mobile telecommunications. voice-only handsets to today’s broadband-enabled Customers, industry, research and government must work together to represents a global phenomenon. move beyond the ‘buy and throw’ mentality to foster a circular economy philosophy of take-make-recreate.

Managing mobile phones is complex and dynamic. It’s set to become an even more exciting field as the digital economy continues to enable and disrupt. For the last 10 years the Australian Mobile Telecommunications Association This is precisely why the reflective and transparent approach in this report is (AMTA) has commissioned annual market research1 into how Australian so valuable for future policy, program management and sectoral innovation. consumers use and dispose of their mobile phones and why they do or don’t recycle. The research has provided critical intelligence in shaping, The carriers and handset manufacturers participating in MobileMuster directing and monitoring the performance of the industry’s recycling have invested wisely in the creation of an impressive take-back and program – MobileMuster. recycling program – I commend this report to you and trust it strengthens momentum in pursuing both recycle-ready product designs and business Established voluntarily in 1998 by the AMTA and its members, the Mobile models which showcase opportunities for Australian leadership in the Phone Industry Recycling Program (MPIRP) now known as MobileMuster, circular economy. aims to keep old mobiles out of and ensure that all components including accessories are recycled to the highest environmental standards.

Associate Professor Damien Giurco In the world of product stewardship MobileMuster is a unique program. Research Director Unlike many schemes across the globe it is not governed by regulation or UTS Institute for Sustainable Futures enforced by mandatory laws. It is a voluntary initiative of manufacturers Leader, Wealth from Waste Cluster 1 Consumer market research data and carriers who have chosen to work together. In May 2014 MobileMuster commissioned annually by the AMTA was accredited as the first voluntary product stewardship scheme under the since 2005. Federal Government’s Product Stewardship Act 2011. Poor functional performance2 has been the primary reason for replacing More people are RECYCLING PERSONALITIES Financial incentives, awareness and access continue to be the three a phone for many years. However, when there is a significant change or main drivers which encourage people to recycle, with personal financial aware of how, why and Certain social themes and factors improvement in technology, as in the case of the , a very strong rewards continuing to be the primary motivation. While MobileMuster has are also relevant within the context desire for the latest technology becomes the overwhelming driver for consumers. where to recycle with raised awareness and made recycling widespread and very accessible, of personal motivation and key This has been the case in Australia from 2010 to 2014 with the release of the altruistic incentives appear to be becoming less of a driver in recent years awareness of mobile drivers where it appears from the iPhone 4 in July 2010 where imports peaked at 13.3 million in 2010/11. as a way of encouraging people to recycle their old phones. phone recycling growing research that there are essentially four recycling personality types: As the rate of technology change slows however, so do consumers reasons from 46% to 79% The Starship Foundation in New Zealand recently decided collecting and for replacing their phone. Seeking the latest technology is now no longer reselling phones was no longer an effective fundraiser as more people the primary reason for buying a new phone. Similarly more people are are holding onto their smartphones for longer, selling them or passing starting to keep their current phone for two or more years. them on to family and friends. This demonstrates the supply and value of phones received by the Foundation to resell and raise funds has In terms of what people do with their old phones, there have been some THOSE THAT WILL diminished over time.4 significant shifts in behaviour over the past ten years. More people are aware RECYCLE AS SOON of how, why and where to recycle with awareness of mobile phone recycling AS THEY KNOW WHY, Effective advertising and promotions has a direct impact on awareness growing from 46% to 78% peaking at 84% in 2011. More people are WHERE AND HOW and engagement of consumers, and if promotions are not maintained recycling with collections increasing from 42 tonne per annum to 74 tonne to a certain level, awareness will reduce and collection rates will drop. in 2014-15, peaking at 122 tonne in 2008/09 and the annual available This is especially the case when people are purchasing a new phone, as collection rate growing from 14.1% to 53.1% peaking at 53.2% in 2012-13. this was the most common event or catalyst that prompted consumers to recycle. As a result it is vital that retailers and manufacturers consistently THOSE THAT NEED A remind customers around the time of purchase as to the why, where Less people are disposing of their phones REMINDER AND AN and how they can recycle or their old phones in order to maximise into landfill, decreasing from 9% to 2%. ADDITIONAL REASON collection and recycling rates of unwanted or redundant phones. TO RECYCLE Access to nearby drop-off locations (i.e. proximity), and in particular Similarly, with the recent growth of online cash for phone and trade-in such as seeing something or high levels of convenience is also an important factor, with most people programs, more people are selling or trading in their phones as a way of someone benefiting from the saying they would likely recycle at the local supermarket and Australia recovering some financial return, up to 6%. phone being recycled – e.g. Post stores in addition to mobile phone retailers. However, having cash to a charity, planting Consumer desire however, to keep old phones remains unchanged (60% collection points in these locations can be very challenging. Currently trees, or being reused by Australia Post only distributes MobileMuster recycling satchels. even if not working). As a result the number of unused phones stored away people in need in homes has grown from 12 million to over 22.5 million in the past decade. Collecting phones at local council drop off days or with TVs and computers is least preferred. The possibility however of recycling This equates to nearly one phone for mobile phones along with batteries, globes or other small electronics, every person in Australia. as in the case of the City of Sydney offering integrated collection THOSE THAT WANT A units located in libraries, does improve convenience and reflects a FINANCIAL REWARD community-friendly approach to maximising collection opportunities. For many people the reason for keeping old phones has been a perceived some may be happy with a need to keep a backup for possible future use. But with the advent of the voucher or discount on their Technological developments have had both positive and negative smartphone more people are citing having personal information on a mobile phone bill, others impacts on mobile phone . They have driven rapid phone and data security concerns, as their reason for keeping their phone. want cash consumption of resources as functionality is enhanced (e.g. introduction This pattern of behaviour also reflects the vast amount of information of the smartphone) and made past technology redundant as networks that can now be stored on phones. This hoarding mentality is a worldwide are upgraded (e.g. CDMA). They have also improved resource efficiency phenomenon and typically very common. An estimated 125 million phones through miniaturisation, dematerialisation and use of recycled content. languish unused in the UK alone.3 Advances in product design and production methods have also reduced THOSE THAT WILL specific types of environmental impacts through the elimination or This trend clearly sends an important message to manufacturers, retailers, NEVER RECYCLE minimisation of hazardous substances. The avoidance of conflict resellers and recyclers about the growing need to help consumers manage fortunately this represents minerals has also been a noteworthy achievement. their data safely and securely. If not effectively addressed, the issue of data less than 5% of respondents security could become a significant barrier to increased levels of reuse and The research data also points towards several implications and recycling of mobile phones into the future. opportunities for the future of mobile phone stewardship in Australia.

Storing of phones represents a significant loss of resources, creating an 2 Phone deteriorating/not working unsustainable balance between the rate of consumption and the rate of 3 Green Alliance (2015) A circular 4 https://www.starship.org.nz/ reuse and recycling, with substantially more mobiles sitting dormant in economy for smart devices. foundation/fundraising/mobile-phone- homes rather than being reused or responsibly recycled. Opportunities in the US, UK and appeal/ The storage of old mobile phones is still a significant issue, representing a The potential for lost opportunity for reuse and recycling. There are compelling reasons significant environmental for industry to look more closely at how it can change or adjust consumer desire to keep a phone as a back-up by: advances across the mobile phone life cycle • Improving the product’s durability and upgradability will start to emerge when • Streamlining repair and replacement of damaged phones greater focus is applied to • Making data management and security a simple yet robust process monetising functionality • Offering innovative and attractive contracts that encourage the return of mobiles (i.e. 1 in 1 out, trade-in, leasing, product-service ownership initiatives) and ‘service’ as opposed • Explore novel ways to fund the collection and recycling of phones (e.g. a to just purchasing a consumer levy on the sale of each handset to fund financial incentives). manufactured item. TABLE OF The potential for significant environmental advances across the mobile phone life cycle will start to emerge when greater focus is applied to monetising functionality and ‘service’ as opposed to just purchasing a manufactured item. CONTENTS

Greater engagement and NON-PARTICIPATING SECOND-HAND TRADERS coordination of activities and RETAILERS e.g. Mazuma Mobile, Cash A Phone, reporting by all players of the e.g. Coles, Woolworths, Harvey PhoneCycle, eBay, GumTree, Page Page mobile phone lifecycle is also Norman, Kogan, eBay, and Cash Converters, Boomerang, required to improve consumer INTRODUCTION 07 MARKET RESEARCH RESULTS 16 other mass retailers who sell Bounce, Money4Mobiles and awareness and access to Current phone ownership mobiles - to include consumer other second-hand traders to reuse and recycling. From THE EVOLUTION messaging on recycling, as ensure product not sold is recycled and use patterns 16 manufacturers, network carriers, OF PRODUCT STEWARDSHIP 08 well as offering a free collection responsibly and contribute to What happens to old retailers and service centres/ service or providing post recycling schemes in markets phones and why? 22 repairers, through to second-hand back alternatives where second hand product is sold AUSTRALIA’S traders and recyclers, including: MOBILE PHONE Encouraging people to recycle 33 INDUSTRY’S RECYCLING NON-PARTICIPATING SERVICE CENTRE/ RECYCLERS PROGRAM - A Collections 39 MANUFACTURERS/ REPAIRERS e.g. MRI, PGM, Sims and SHORT HISTORY 09 DISTRIBUTORS to ensure that all mobiles other recyclers processing DISCUSSION 42 e.g. Apple, Sony Mobile, and accessories that cannot mobile phones and accessories THE MOBILE PHONE MARKET share information on LG, Blackberry, ALDI and be repaired are recycled 2005 TO 2015 13 CONCLUSION 48 as well as encouraging volumes processed, material Oppo to promote and offer Imports and exports 13 recycling as well as publicly customers to recycle recovery rates and recycling REFERENCES 51 Mobile phone subscriptions reporting on collections methods for handsets, batteries and accessories and technology 14 and recycling processes APPENDICES 52 RESEARCH Continuing research to monitor changes in consumer mobile phone use, METHODOLOGY 15 recycling, storage, reuse and the extent of phones available for recycling. The market research to date has been a particularly useful tool in guiding the program’s marketing activities and the development of its collection network. It has also provided deeper insights into the triggers and motivations behind Australian consumers, and why they choose to participate in recycling programs.

This will ensure that the program adapts to ever-changing use and disposal patterns as well as the need to accurately monitor the effectiveness of program activities on consumer behaviour and the associated impacts of technology and markets. 7 8 Introduction The evolution of product stewardship THE EVOLUTION INTRODUCTION OF PRODUCT STEWARDSHIP

For the last 10 years The research has provided critical In the world of product stewardship the Australian Mobile intelligence in shaping and MobileMuster is a unique program. directing the industry recycling Extended Producer Responsibility (EPR) is an environmental protection Telecommunications program; MobileMuster. In Unlike many schemes across strategy with the goal of reaching an environmental objective of a Association (AMTA) has particular, how the program can the globe it is not governed decreased total environmental impact of a product. This is achieved by been researching how increase consumer awareness and by regulation or enforced by making the manufacturer of the product responsible for the entire life cycle engagement through improved mandatory laws. It is a voluntary of the product and especially for the collection, recycling and final disposal.5 Australian consumers knowledge, access and incentives initiative of manufacturers and use and dispose of their with the ultimate goal of increasing carriers who have chosen to The introduction of EPR was an evolutionary step in environmental mobile phones and why collections and keeping old mobiles work together. regulation where the producers’ responsibility was broadened from out of landfill. just the traditional focus on the abatement of emissions and effluents they do or don’t recycle. The program also takes a shared from factories, and related industry facilities, to the whole life cycle Compiling 10 years of market approach to product stewardship of the product. Thus, the notion of EPR implies that the conventional research into one report enables where manufacturers and responsibilities for facility-based pollution need to be broadened.6 the telecommunications, waste carriers share the responsibility and recycling industries, and other for the product. Many other In its simplest form EPR is about companies taking their environmental relevant stakeholders, to: schemes around the world see the 5 Thomas Lindhqvist, “Towards an responsibility beyond the point of manufacture, sale and warranties, and responsibility rest primarily with [EPR] analysis of experiences and effectively managing the total life cycle of their products. EPR requires • Review what changes have the manufacturer or producer of proposals,” April 1992. manufacturers, brand owners, importers, retailers and supply-side occurred over time and how the goods. enterprises to assume greater responsibility for their products when they 6 Lifset, R. ‘Extending Producer effective the program has been Responsibility in North America: are discarded or after consumers no longer have a need for them. in driving change in consumer By publishing these results Progress, Pitfalls, and Prospects’, in recycling behaviour the industry hopes that the Extended Producer Responsibility: A EPR prompts companies to place greater emphasis on responsible design New Principles for a New generation of • Assess the impact of evolving insights from the past 10 years and manufacturing processes in addition to integrating systems to recover, will contribute to the ongoing Pollution Prevention. Proceedings of reuse and recycle products once they are discarded.7 mobile technology and markets the Symposium on Extended Producer on recycling behaviour, and development of product stewardship Responsibility, November 14-15, 1994 Assigning producers responsibility both financially and/or physically for policy internationally. Washington, D.C. • Consider what this means for the treatment or disposal of post-consumer products via EPR can provide the future of mobile phone 7 Gertsakis, J. Facilitating EcoDesign incentives to prevent at the source, promote product design for the stewardship in Australia over and Product Stewardship in Australia. environment and support the achievement of public recycling and materials the next 10 years. Masters Thesis, RMIT University, management goals.8 Melbourne 2003.

8 http://www.oecd.org/ Product stewardship, as defined in the Australian Product Stewardship env/tools-evaluation/ Act 20119 is a broader policy approach than EPR where it acknowledges extendedproducerresponsibility.htm that those involved in producing, selling, using and disposing of products 9 http://www.environment.gov.au/ have a shared responsibility to ensure that those products or materials are protection/national-waste-policy/ managed in a way that reduces their impact, throughout their life cycle, on product-stewardship the environment and on human health and safety. 9 10 Australia’s mobile industry’s recycling program: A short history Australia’s mobile industry’s recycling program: A short history

Current members At that time most phones came with two nickel cadmium10 batteries. Past members of of MobileMuster: Mobile phone imports for 1998 were approximately 4 million and growing MobileMuster include: at an average rate of 15% per annum. There were approximately 6 million AUSTRALIA’S mobile subscribers and the CDMA network11 was about to be rolled out meaning this would increase further (Figure 2, page 14).

The founding members of the program were Telstra, Nokia and Motorola. The program was initially funded solely by manufacturers who each paid a levy on the number of handsets they imported into MOBILE the market. In 2005 funding arrangements were reviewed and a new funding model was established with both manufacturers and network carriers contributing to the program based on their market shares.

Membership of the program has grown and changed over time as INDUSTRY’S has its consumer brand from Phones4Ark in 2001 to MobileMuster since 2005. The program is currently funded by handset manufacturers Microsoft, Samsung, HTC, ZTE, Huawei, Alcatel One Touch, aftermarket battery supplier Force Technology and network carriers Telstra, Optus, Vodafone and Virgin Mobile. Each RECYCLING member contributes to the program by paying a levy ($0.30AUD for manufacturers and $0.12AUD for network carriers) on the number PROGRAM: of handsets that are imported into the country by members. A SHORT

HISTORY 10 Cadmium is a hazardous material that can be harmful to the environment and human health if not handled properly. Nickel cadmium batteries are very recyclable under controlled conditions where both the nickel and In late 1998 the Australian Mobile Telecommunications cadmium can be recovered separately in a closed system and then reused Association (AMTA) voluntarily initiated its Mobile as raw materials for more batteries, Phone Industry Recycling Program (MPIRP) in stainless . response to the need to keep potentially hazardous 11 CDMA (Code-Division Multiple Access) refers to any of several mobile phone nickel cadmium batteries out of protocols used in second-generation landfill. Like most product stewardship schemes () and third-generation () wireless communications. across the world, the need to reduce hazardous As the term implies, CDMA is a waste was a key driver for its creation. form of multiplexing, which allows numerous signals to occupy a single transmission channel, optimising the use of available bandwidth. The technology is used in ultra- high-frequency (UHF) cellular telephone systems in the 800-MHz and 1.9-GHz bands. http://searchtelecom. techtarget.com/definition/CDMA. 11 12 Australia’s mobile industry’s recycling program: A short history Australia’s mobile industry’s recycling program: A short history

Over the years mobile phone design, technology and infrastructure has evolved rapidly. The first mobile call in Australia was made on 23 February 1987 by the then Minister for Communications, Michael Duffy using an analogue mobile phone. Over the years we have seen handsets and networks evolve becoming more sophisticated and widespread. As the networks have changed from analogue, CDMA, GSM, 2G, 3G and now , handsets have evolved in size, capability and materials (Figure 2, page 14). 1985 1995 2003 2008

With the rapid uptake of mobile phones by Australians from 1998 to In May 2014, MobileMuster was accredited as the first voluntary product 2004 (imports grew from 3.9m to 7.12m and subscribers grew from stewardship scheme under the Federal Government’s Product Stewardship 7.57m to 16.48m – see figures 1 and 2),12 community and government Act 2011. Federal Minister for the Environment, Greg Hunt, recognised concern about what was happening with all the old mobile phones the program’s significant achievements and the industries $36 million and their batteries was growing raising a number of questions for investment into it. the industry: As part of this accreditation, MobileMuster’s members re-committed to Were all these old mobiles going to landfill or being stored at homes? increase available collection rates of mobile phones from 50% to 55% and How often were people upgrading? Were they being exported for resale volumes from 87 tonnes to 127 tonnes per year over the next 5 years, as into developing countries? How many were being recycled? Should a well as increase consumer and industry engagement.13 deposit be put on handsets to ensure they are recycled?

In response to these concerns AMTA in early 2005 commissioned The MobileMuster is the first product stewardship Klein Partnership to undertake the first widespread market research into scheme to be accredited by the Federal consumer, business and stakeholder views and behaviours on mobile Government under the Product Stewardship phone use and recycling. Act and is the only government accredited It revealed that only 46% of consumers were aware that they could mobile phone recycling scheme in Australia. recycle their mobile phones, around 9% of people were throwing their mobiles into landfill and there were an estimated 12 million unused Ten years since the launch of MobileMuster brand, 78% of consumers are mobiles stored away in homes. now aware that they can recycle their mobile phones, over 937 tonnes of mobiles and accessories have been collected and recycled, only 2% of This research set the foundation and benchmark for mobile phone people throw their mobiles into landfill, there are an estimated 22.5 million ownership, use and recycling in Australia and has been key to the phones in storage and the annual collection rates of those phones available development and success of the industry’s official recycling program. for recycling is 53.1%. In response to this research AMTA re-launched its recycling program How has consumer mobile phone use and recycling behaviour changed as MobileMuster in December 2005 with the specific aim of improving over the past decade? What has driven these changes and how have they its visibility, transparency and sustainability to increase collections, stop affected the performance of the program? By reviewing the 10 years of mobile phones going to landfill and ensure all components are recycled to research data along with the program’s activities and results we hope to the highest environmental standards. 12 (ABS/OECD) 1998-2004. Credit 13 See appendix 1 for MobileMuster answer these questions, and from this, determine the future direction of Suisse First Boston 2005, Australian Key Performance Indicators from Telecommunications 2005, Equity Research. 2014/15 to 2018/19 mobile phone stewardship for the next decade. 13 14 The mobile phone market 2005 to 2015 The mobile phone market 2005 to 2015

MOBILE PHONE SUBSCRIPTIONS AND TECHNOLOGY

Over the past decade Australian Australian Communications and comparative low of 7% for people THE MOBILE mobile phone ownership has grown Media Authority (ACMA) research aged 65 years and over to a high of rapidly and reached saturation shows that saturation of the 99% for those aged 18 to 24 years. levels for most age groups. Australian mobile phone market In 2005 there were 16.48 was achieved in 2011 when In 2015 the number of mobile million mobile phone subscribers an estimated 92% of the adult phone subscribers (voice and data) PHONE MARKET (voice and data) representing a population (those aged 18 years increased to just over 31 million, penetration rate of 82%.17 and over) used a mobile phone.18 representing a 138% penetration Mobile phone use ranged from a rate (ACMA, December 2014).19

2005 TO 2015 FIGURE 2. MOBILE PHONE SUBSCRIPTIONS AND TECHNOLOGY

IMPORTS AND EXPORTS MOBILE NATION

Over the past 10 years imports have In 2014/15 they dropped back over time. This has reduced the Australians have been going mobile for nearly three decades. The Australian Mobile Telecommunications Association (AMTA), the peak grown from 9.5 million in 2005/06 down to 1.48 million or 12% program’s annual revenue15 by industry body, turned 21 on 20 September 2015. We can take stock and see how Australians have embraced mobile technology since 1987 14 when the first official call was made using an analogue mobile phone. The relentless growth in mobile services and evolution from bulky to 12.2 million in 2014/15, peaking of imports. $1.67 million (from $4.06m in voice-only handsets to today’s broadband-enabled smartphones has been a global phenomenon. Turning 21 allows AMTA to reflect and, in 2010/11 at 13.35 million. 2007/08 to $2.30m in 2014/15). more importantly, look forward to the next generation of mobile telecommunication technologies, which will continue to drive productivity Exports have almost doubled over Annual member handset shipments In turn, investment on advertising and provide unprecedented connectivity to an emerging networked society via the Internet of Things. the past 10 years from 1.1 million dropped from a peak of 9.6 million and program promotion has to 2.0 million per annum, with the in 2007/08 to 5.8 million in dropped from 57% of total revenue biggest jump in growth taking place 2014/15 as the market shares of to 34%, with less than $1 million 2G 2G 3G 4G during 2010/11 where exports participating and non-participating per annum spent on advertising and NETWORK GSM CDMA LTE 42 1987 – 1999 1993 1999 2005 2011 2020? represented 18% of imports. manufacturers have changed promotion in the past three years. 1ST GENERATION 2ND GENERATION CDMA 3RD GENERATION 4TH GENERATION 5TH GENERATION TECHNOLOGY TECHNOLOGY (2G) TECHNOLOGY (3G) TECHNOLOGY (4G) TECHNOLOGY (5G) 40 Code Division Multiple Access Introduced in 1987 by Telstra is shutting down its 2G (CDMA) is a digital standard, Advancement on the 3G Wideband Code Division Telecom (known today as network at the end of 2016 designed for use in cellular network where all wireless Multiple Access 38 Telstra), Australia received its and Optus in 2017. mobile networks. This branch standards interoperate. 4G (WCDMA) - a technology FIGURE 1. MOBILE PHONE SHIPMENTS, IMPORTS, EXPORTS 16 first cellular mobile phone of 2G was introduced by is expected to deliver fast FIGURE 1. MOBILE PHONE SHIPMENTS, IMPORTS, EXPORTS, MEMBER MARKET SHARE (BY UNITS) 1998-2015. for wideband digital radio network using a 1G analogue Telstra to replace the analogue broadband quality internet MEMBER MARKET SHARE (BY UNITS)1998 TO 2004 communications of 36 system. At its peak, the 1G 1993 – 2016 mobile phone system. services directly to the internet, multimedia, network had around 2 DIGITAL mobile handset. video and other million subscribers. Telstra introduces the digital 16,000,000 APPLE SONY LG 100% 34 capacity-demanding MEMBER MARKET network called GSM - ENTERS LEAVES LEAVES applications. SHARE % ) (MILLION) Global System for Mobile 4.5G MARKET PROGRAM PROGRAM 90% LTE ADVANCED 14,000,000 32 Communication. 80% TION (SI O 12,000,000 TOTAL IMPORTS A 28 70%

10,000,000 60% 24 ES IN OPE R VI C 8,000,000 50% 20 MEMBER SHIPMENTS 40%

6,000,000 OBILE SE R 16 M

MOBILE PHONE UNITS 30% 4,000,000 12 20% MARKET SHARE PERCENTAGE 2,000,000 TOTAL EXPORTS 10% 8

0% 4 1998/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

0 YEAR 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020

14 GfK, ABS Customs data.

15 Revenue is generated from the levy paid 17 AMTA, 2005 on each handset imported by program members, currently at $0.42/handset 18 ACMA, 2012

16 See appendix 3.1 for raw data 19 ACMA, 2014 15 16 Research methodology Market research result RESEARCH MARKET METHODOLOGY RESEARCH

The data used in this report is drawn from consumer research commissioned annually by the AMTA since 2005 (see appendix 2 for RESULTS market research timeline).

The overarching objective of the consumer research has been two-fold:

1. To gain insights into the current and changing behaviour of Australian CURRENT PHONE OWNERSHIP AND USE PATTERNS mobile phone users focussing on mobile phone ownership, use and HOW MANY PHONES HAVE YOU OWNED? recycling behaviours including awareness, attitudes and behaviour towards mobile phone recycling The vast majority of the Australian population have owned more than one 2. To assess the effectiveness and impacts of the program’s promotional mobile phone, with the number of people who have owned 4 or more and advertising activities. mobile phones doubling since 2005 from 29% to 57%.22 Furthermore, approximately 18% of mobile phone users currently have two mobiles.23

TARGET AUDIENCE AND SAMPLE SIZE

FIGURE FIGURE3. HOW MANY 2. HOW MOBILE MANY PHONES MOBILE HAVE PHONES YOU EVER HAVE OWNED? YOU EVER OWNED? In total 16 surveys have been respondents had to be aged TV, radio and online advertising completed (see appendix 2 for list between 16 to 64 years, own a campaigns were also undertaken 60 FOUR OR MORE of surveys). The audience, sample mobile phone and live in either in 2008 and 2009. Data from size and method (I.e. telephone vs Sydney, Melbourne, Adelaide or these surveys has only been 50 online) for the surveys have varied Perth. Each time 600 to 700 people used where appropriate. The slightly over time. In undertaking were surveyed. sample size was similar to the the analysis these variations have IPSOS research with 1000 to 40 been taken into consideration when From November 2011, it was 1100 people being surveyed. comparing data year on year. decided to broaden the sample size 30 to cover a nationally representative THREE In the first survey conducted panel of respondents throughout PERCENTAGE (%) 20 TWO by The Klein Partnership20 in Australia. As in previous years 2005, the sample size was 904, the survey respondents were 10 ONE demographically representative of randomly selected from an online the population with individuals 15+ panel and invited to take part in 0 nationally, with 87% being mobile the survey. In order to qualify MAR-05 MAR-06 MAR-07 MAR-08 MAR-09 MAR-10 MAR-11 MAR-12 MAR-13 MAR-14 MAR-15

phone users. Interviews were done respondents had to be aged 16 MONTH by telephone. years or older and own a mobile phone. Each time 1000 to 1100 From 2006 to February 2011, people were surveyed by IPSOS. 20 The Klein Partnership, Independent IPSOS21 undertook the research. market research consultancy, The survey respondents were A number of shorter surveys using http://www.tkp.com.au/

randomly selected from an online Omnibus (18+) and Newspoll 21 IPSOS, Independent market research 22 See appendix 3.2 for raw data panel and invited to take part (18-64) to specifically assess company, ranked third in the global in the survey. In order to qualify the effectiveness and impact of research industry http://ipsos.com.au/ 23 See appendix 3.3 for raw data 17 18 Market research result Market research result

LENGHT OF OWNERSHIP - PREVIOUS HANDSET PHONE PLAN TYPE - 2015

HOW LONG DO PEOPLE USE THEIR PHONE FOR – FIGURE 6. LENGTH OF OWNERSHIP - PREVIOUS HANDSET BY PHONE PLAN TYPE 2015 EXPECTED VERSUS ACTUAL 70 TOTAL

In terms of expected use, on average more than half of mobile phones users PRE PAID expect to keep their mobile for longer than 2 years, around 25% for 18 to 24 60 CONTRACT months and 15% for 12 to18 months. 50 COMPANY PHONE Over the decade this has varied by a few percentage points up or down with the expected length shortening in 2010 and 2011, but then increasing 40 again more recently towards keeping it longer.FIGURE24 3. EXPECTED USE VS. ACTUAL USE 30 ERCENTAGE (%)

2011-2015 P

20 FIGUREFIGURE 4. EXPECTED 4. EXPECTED LENGTH LENGTH OF USE FOR OF USEMOBILE FOR PHONE MOBILE PHONE

2011-15 Under 6 6 - 11 12 - 18 19 - 24 2+ 10years Don't 60 months months DON’T KNOWmonths months know 0 50 2+YEARS Averge Expected 0.8% 2.8% 11.8% 24.0% 54.3% UNDER 6 6.3% 6 TO 11 12 TO 18 19 MONTHS 2 YEARS DON’T 19-24 MONTHS MONTHS MONTHS MONTHS TO 2 YEARS OR MORE KNOW 40 Average Actual 3.3% 7.3% 12-18 MONTHS12.7% 19.3% 56.0% 1.3% BRAND 30 6-11 MONTHS

UNDER 6 MONTHS PERCENTAGE (%) 20 Both plan type (i.e. contract versus prepaid) and age were linked to the duration of use. Prepaid users either turned over their phone quickly 10 (i.e. less than 19 months) or kept them for more than two years.

0 More contract phones are turned over in the 19 month to 2 year period. Work MAR-06 MAR-07 JUN-07 FEB-08 FEB-09 FEB-10 FEB-11 NOV-11 DEC-12 JAN-14 FEB-15 phones appeared to be turned over either every 12 months or every 2 years.25 MONTH Younger people (i.e. 18 to 24 years old) are more likely to keep their FIGURE 3. EXPECTED USE VS. ACTUAL USE FIGURE 3. EXPECTED USE VS. phonesACTUAL for a USEshort period (i.e. 32% versus 7% - less than 19 months) 2011-2015 2011-2015 with older people (50 years or older) more likely to keep their phones for However, when comparing average FIGURE 5. EXPECTED USE VS. ACTUAL USE 2011-2015 more than two years. expected use with average actual use, from 2011 the research < 6 MONTHS UNDER 6 MONTHS revealed people didn’t keep their phones as long as they expected to. 6-11 MONTHS 6-11 MONTHS 12-18 MONTHS Where 54% of people expected to use their phone for 2 years or more 19-24 MONTHS 12-18 MONTHS in reality only 49% of people used 24+ MONTHS their phone for 2 years or more DON’T KNOW and only 22.5% kept their phone 19-24 MONTHS for 19 to 24 months versus 24%. Correspondingly, the proportion of 24+ MONTHS mobile phone users who kept their phone for 12 to 18 months or less DON’T KNOW increased from 11% to 17% and for those who kept their phone for less than 12 months it increased from 3.5% to 8.5%. EXPECTED USE ACTUAL USE

24 See appendix 3.4 for raw data 25 See appendix 3.5 for raw data 19 20 Market research result Market research result

FIGUREFIGURE 7. REASONS 5. REASONSFOR OBTAININGFIGURE FOR CURRENT OBTAINING 5. REASONS PHONE CURRENT FOR OBTAINING PHONE CURRENT PHONE

35% 35% MAR-05 MAR-05 MAR-06 MAR-06 30% 30% MAR-07 MAR-07 JUN-07 JUN-07 FEB-08 FEB-08 25% 25% FEB-09 FEB-09 FEB-10 FEB-10 20% 20% FEB-11 FEB-11 NOV-11 NOV-11 15% 15% DEC-12 DEC-12 JAN-14 JAN-14 FEB-15 FEB-15 10% 10%

5% 5%

0% 0% PHONE DETERIORATED/ PHONEWANTED DETERIORATED/ LATEST NEW/WANTED EXPIRED LATEST $0 UPNEW/ FRONT EXPIRED WITH PHONE$0 UP FRONTLOST/ WITH GIVENPHONE PHONE/ LOST/ WORKGIVEN RELATED/ PHONE/ UPGRADINGWORK RELATED/ FROM NEEDEDUPGRADING A PHONE FROM NEEDEDOTHER A PHONE OTHER NOT WORKING/ TECHNOLOGY/ NOT WORKING/ CONTRACTTECHNOLOGY/ NEWCONTRACT CONTRACT NEWSTOLEN CONTRACT GIFT/ SOMEONE STOLEN ELSE SUPPLIEDGIFT/ SOMEONE BY ELSE CDMASUPPLIED NETWORK BY CDMA NETWORK BROKE MODEL/IPHONE/BROKE MODEL/IPHONE/ BOUGHT EMPLOYER BOUGHT EMPLOYER SMARTPHONE SMARTPHONE

WHY ARE PEOPLE GETTING A NEW PHONE? FIGUREFIGURE 8. BRAND 6. BRAND OF CURRENT OF MOBILECURRENT PHONE MOBILE PHONE

The main reasons for getting a new phone haven’t changed much over 35 One of the top 3 reasons NOV-11 time26 with the top 3 reasons up until 2011 being phone deteriorating/not for getting a new phone is DEC-12 working (24% on average) or wanted latest technology/smartphones (28% 30 on average) or existing contract expired (17% on average). Interestingly a $0 wanted latest technology/ JAN-14

up front with new contract and phone given by friend or work are less of a smartphones. 25 FEB-15 reason now than previously. (%) 20 From 2011 to 2014 however the percentage of people citing the desire

for new technology and smartphones as a reason for replacing their old 15 phone jumped up to over 33% on average, which reflects the uptake PERCENTAGE of smartphones by the Australian community. As expected this is now 10 becoming less of a reason (down to 20% in 2015) as nearly 90% of 27 Australians own a smartphone. 5

With 23 million inhabitants, Australia has a much smaller population than 0 other major mobile markets such as the and the United IPHONE SAMSUNG NOKIA HTC OTHER LG SONY MOTOROLA BLACKBERRY ZTE Kingdom, but it has higher rates of ownership with the two major brands Apple and Samsung dominating the smartphone market.28 26 See appendix 3.6 for raw data BRAND

27 2014 Australian Mobile Phone Lifestyle Index (AMPLI). http://www.aimia.com.au/ampli2014

28 See appendix 3.7 for raw data 21 22 Market research result Market research result

WHO ARE PEOPLE BUYING THEIR PHONES FROM? WHAT HAPPENS TO OLD PHONES AND WHY?

While the majority of people purchase their mobile phones from mobile phone The majority of people WHAT ARE AUSTRALIAN MOBILE PHONE OWNERS DOING WITH retailers, there is a growing number of alternative places to purchase new THEIR OLD MOBILES? mobiles either through mass channels like supermarkets and discount electronic purchase their mobile retailers or online sites like Kogan, direct from manufacturers or eBay.29 phones from mobile Over the past decade some clear trends in what people phone retailers. are doing with their previous phone emerged:31 The more diversified retailer network makes promoting recycling at the point of sale more difficult, especially in discount stores, supermarkets • More people are keeping their phones, an increase from 46% to and through online sites. 61%, even if they are not working (25% of those kept don’t work)

• Less people are giving their previous phone away either to family / FIGURE 7. WHERE DID YOU BUY YOUR LAST MOBILE? FIGURE 9. WHERE DID YOU BUY YOUR LAST MOBILE? friend or charity, dropping from 19% to 13% • More people are selling/trading in their previous phone, up from 4% to 6% (note the main increase in selling not trading 0% to 4%)

MOBILE PHONE RETAILERS • More people are recycling their previous phone, up from 4% to 12%

ELECTRONICS STORE • Less people are throwing them in the rubbish, down from 9% to 2% NOV-11 DEC-12 DISCOUNT STORES/ • Less are being stolen, down from 8% to 2%. NOV-11 DEC-12 SUPERMARKETS/AUSPOST

EBAY LOST AND STOLEN OTHER The AMTA has an agreement in place with all Australian mobile DON’T KNOW/DIDN’T ANSWER phone carriers to block all lost or stolen mobile phones by letting

ONLINE people check the IMEI status of a mobile phone. If a mobile phone is lost or stolen, consumers can contact their service provider immediately JAN-14 FEB-15 GIFT - HAND ME DOWN to suspend their service and stop unauthorised calls being made. The provider will block your SIM card and IMEI number to prevent WORK the phone from being used on any Australian mobile network.

OVERSEAS JAN-14 FEB-15

FIGURE 10. WHAT HAPPENED TO YOUR PREVIOUS MOBILE PHONE? FIGURE 8. WHAT HAPPENED TO YOUR PREVIOUS MOBILE PHONE?

70 KEPT IT JUST IN CASE 60 RECYCLED IT MOBILE PHONE RETAILERS EBAY ONLINE WHEN DO PEOPLE BUY OR RECEIVE NEW PHONES? 50 DONATED TO ELECTRONICS STORE OTHER GIFT - HAND ME DOWN CHARITY DISCOUNT STORES/ DON’T KNOW/ WORK 40 GAVE IT TO TheSUPERMARKETS/AUSPOS main time periods when peopleDIDN’T get ANSWERa new phone are eitherOVERSEAS when the SOMEONE ELSE previous one stopped working properly or broke, when their contract was up 30 THREW IT AWAY or when an updated model was launched with one quarter to one third of PERCENTAGE (%) people getting a new phone at either of these times. 20 SOLD IT/ TRADED IT

Around 1 in 20 people get a new phone either at Christmas, on their birthday, 10 LOST OR STOLEN when they start a new job or towards the end of the financial year.30 0 MAR-05 MAR-06 MAR-07 JUN-07 FEB-08 FEB-09 FEB-10 FEB-11 NOV-11 DEC-12 JAN-14 FEB-15

MONTH 29 See appendix 3.8 for raw data

30 See appendix 3.9 for raw data 31 See appendix 3.10 for raw data 23 24 Market research result Market research result

PLANNED VERSUS ACTUAL BEHAVIOUR FIGUREFIGURE 13. POPULATION 11. POPULATION AND HOUSEHOLD AND HOUSEHOLD NUMBERS VS NUMBERSMOBILES IN VSSTORAGE MOBILES & IMPORTS IN STORAGE & IMPORTS

While people’s intention to recycle their current phone increased over the 25 POPULATION past decade to 27% in 2015 only 12% said they recycled their previous phone this year. Correspondingly more people kept their previous phone this POPULATION TOTAL NO. OF PHONES IN STORAGE IN AUS year, 61% compared to 26% saying they will recycle their current phone.32 20 TOTAL NO. MOBILE IMPORTS TOTAL NO. OF PHONES IN STORAGE IN AUS NO. OF HOUSEHOLDS IN AUS FIGURE 11. WHAT ARE YOU PLANNING TO DO WITH YOUR OLD MOBILE WHEN YOU GET A NEW ONE? FIGURE 9. WHAT ARE YOU PLANNING TO DO WITH YOUR OLD MOBILE WHEN YOU GETA NEW ONE? 15

TOTAL NO. 50 OF IMPORTS KEPT IT JUST IN CASE 10 NUMBER OF PHONES (MILLIONS) NO. OF HOUSEHOLDS IN AUS 40 RECYCLE IT

DONATE TO 30 CHARITY 5

GIVE IT TO MAR-05 MAR-06 MAR-07 MAR-08 MAR-09 MAR-10 MAR-11 MAR-12 MAR-13 MAR-14 MAR-15 SOMEONE ELSE 20 MONTH PERCENTAGE (%) THROW IT AWAY

SELL IT 10

TRADE IN The average number of phones in storage per household grew from 1.58 in 2005 to 2.45 in 2015, peaking at 2.66 in 2012.34 Likewise the average 0 DON’T KNOW MAR-05 MAR-06 MAR-07 JUN-07 FEB-08 FEB-09 FEB-10 FEB-11 NOV-11 DEC-12 JAN-14 FEB-15 number of phones in storage per-capita grew from 0.6 in 2005 to 0.9 in

MONTH 2015, peaking at 1.33 in 2014.

MOBILE PHONES IN STORAGE FIGUREFIGURE 14. AVERAGE 12. AVERAGE NUMBER OF NUMBER PHONES PEROF PHONESHOUSEHOLD PER & PERHOUSEHOLD CAPITA & PER CAPITA As a result of so many people keeping their previous phone/s the estimated Unused phones in storage 4.0 amount of unused phones in storage has grown substantially over the past has grown substantially decade from 12 million to 22.5 million.33 From 2008 to 2011 there was a rapid growth in phones in storage but this started to slow in 2012 to the point where over the past decade from AVERAGE NO. OF PHONES IN STORAGE PER CAPITA it dropped for the first time in 2015. 12 million to 22.5 million. 3.0 CLARIFICATION OF Y-AXIS? Likewise the number of people who had two or more phones in storage increased for a number of years peaking at 40% in 2011. This figure then started to reduce in 2.0 2012 to 36% in 2015. PHONES IN STORAGE NUMBER OF PHONES PER HOUSEHOLD 1.0 FIGUREFIGURE 12. MOBILE 10. MOBILE PHONES PHONES IN STORAGE IN STORAGE

60 25 0.0

MAR-05 MAR-06 MAR-07 MAR-08 MAR-09 MAR-10 MAR-11 MAR-12 MAR-13 MAR-14 MAR-15 50 EST. NO. OF PHONES IN STORAGE 20 MONTH 40 TWO OR MORE 15

30 According to a national study by Fear in 200835 on clutter, Australians say 10

PERCENTAGE (%) 20 they are hanging on to the ‘stuff’ that clutters up their homes because they are too lazy or too busy to deal with it; or they feel guilty for getting rid of 5 NUMBER OF PHONES (MILLIONS) 36 10 things that they invested in.

34 See appendix 3.13 for raw data 0 0 MAR-06 MAR-07 JUN-07 FEB-08 FEB-09 FEB-10 FEB-11 NOV-11 DEC-12 JAN-14 FEB-15 35, 36 Josh Fear, 2008, Stuff happens: MONTH Unused things cluttering up our 32 See appendix 3.11 for raw data homes, The Australia Institute, viewed 16 July 2015, 33 See appendix 3.12 for raw data http://apo.org.au/node/603. 25 26 Market research result Market research result

The majority of Australian homes accumulate clutter as people make the conscious decision to keep unwanted and unused things in their homes rather than throwing them away, recycling, selling or giving them to someone else.37

Naturally mobile phones, like other household clutter, tend to accumulate over a lifetime. AMTA generally accepts that most people will keep one working phone as a backup, but questions the need to keep two or more. This is why reducing the percentage of people who have two or more phones in storage is one of MobileMuster’s key performance indicators.38

To further understand the type of phones in storage the November 2009 Omnibus survey of 1,045 people, included questions about whether the phones people had in storage were still working or not and how old they were.

Of the mobiles in storage 41% were estimated to be four or more years old and 61% believed to still be working.39

HOW LONG ARE PEOPLE PLANNING TO STORE THEIR PHONES?

More people are intending to hold on to their phone for two or more years now than 10 years ago, but at least a third of mobile phone users still don’t really think about it.40

FIGURE 15. IF STORING/KEEPING YOUR PHONE, HOW LONG DO YOU EXPECT TO KEEP IT FOR? FIGURE 13. IF STORING/KEEPING YOUR PHONE, HOW LONG DO YOU EXPECT TO KEEP IT FOR?

50 WHY ARE PEOPLE KEEPING THEIR OLD PHONES AND NOT RECYCLING THEM?41

40 The main reason since While initially in 2005 and 2006 the primary reason people kept their 2007 has been that phone and didn’t recycle it was that they didn’t know they could or they 30 weren’t sure what to do with it. The main reason since 2007 has been people wanted it as a that people wanted it as a spare for back up. This reason has continued

20 spare for back up. to be the primary reason with anywhere from 40% to 60% of people PERCENTAGE (%) listing this as a reason for not recycling their phone over the years.

10 The next most common reasons given are that the phone still works, the person may need it or that it has information / numbers on it. The

0 percentage of people who have given one of these reasons has grown MAR-05 MAR-06 MAR-07 MAR-08 MAR-09 MAR-10 MAR-11 MAR-12 MAR-13 MAR-14 MAR-15 over the years from less than 10% to more than 20% in 2014, dropping

MONTH to 16% in 2015.

37 Josh Fear, 2008, Stuff happens: Haven’t got around to it is the next most common reason ranging from DON’T KNOW 12-18 MONTHS Unused things cluttering up our 11% to 25% over the years with no clear trend over time. 2+YEARS 6-11 MONTHS homes, The Australia Institute, viewed 16 July 2015, Didn’t know they could recycle it as a reason given for holding onto their old 19-24 MONTHS UNDER 6 MONTHS http://apo.org.au/node/603. handset dropped from 13% in 2007 to 5% in 2015, but not sure what to do 38 See appendix 1 KPIs for raw data with it increased from 8% in 2005 to 14% in 2015. This possibly reflects that there are now more factors to consider in deciding what to do with your 39 See appendix 3.12 for raw data old phone. Reasons given by consumers included security concerns or that 40 See appendix 3.14 for raw data 41 See appendix 3.15 for raw data people may be able to sell it or repair it or use it overseas. 27 28 Market research result Market research result

Handing it on to friends or family to use was more likely to be given as WHAT TYPE OF HOARDER ARE YOU? a reason for not recycling in 2005 and 2006 than in more recent years, while keeping for kids to play with continues to remain a reason for some The reasons people hoard their old mobiles can be grouped into seven (between 2% to 6%). personality types:

Knowing where to recycle has been a reason for not recycling for about 9% of people on average over the decade, interestingly this went up to 16% in 2015. This probably reflects the gradual drop in general awareness of mobile phone recycling over the past two years from 83% in 2013 to 79% in 2015.

If you find yourself putting off There is also a small percentage of people, around 2%, that consider it de-cluttering and recycling all was an expensive phone/paid good money for it. those unnecessary electronic items that are tucked away in cupboards and drawers, then you qualify as a ‘Maybe Later’ type

This is someone who is holding onto Would it surprise you to know that Some people believe that one day their old mobiles for sentimental one in ten Aussies are holding onto their old mobile phone will be worth reasons such as, it being their an old mobile in case they might a lot of money as an antique. Like first mobile, were using it when need it in an alien invasion? pennies, mobiles are a dime a they met their partner or perhaps dozen with very few of them ever receiving it as a gift from a parent becoming so rare or unique that they become a valuable collector’s item

TAKE THE QUIZ

mobilemuster.com.au/news/quiz-what-type-of-hoarder-are-you

A typical technophile is someone This person is typically concerned Have you ever given your old who is often an early adopter of new about the security of their data mobile to someone close to you technology and holds onto these phones when it comes to disposing or to a child to play with? If so, for the enjoyment of remembering of their old electronics then you are a typical gift-giver when they first got their hands on it or to have a physical reminder of how far technology has come 29 30 Market research result Market research result

THE DIGGER - THE CONCEPT OF VALUE AS A REASON FOR FIGURE 16. MOBILEMUSTER EBAY.COM.AU WATCH LIST 2010 - RESALE VALUE OF PHONES KEEPING A PHONE

To further understand how much were more than four years old, with people value their phones in some two to four years old. the November 2009 Omnibus survey 1,045 people were asked MobileMuster also developed its if they were to sell their phones own ‘watchlist’42 in January 2010 to in storage how much they would track the prices of a variety of used expect to get for each of them. phones aged four or more years old listed for sale on eBay.com.au. (See The responses were varied, with Figure 16) some people estimating as much 4+ 4+ 4+ as $1,000, however the average The average sale price for a phone YEARS YEARS YEARS estimated re-sale value was closer was likely to be just over $20, with OLD OLD OLD to $27. Interestingly, 35% believed some struggling to find buyers at their phone had no monetary value all. Sellers also had to wear the and 62% valued their phone at $10 cost of posting their old phone on or less and 75% at $20 or less. eBay.com.au, which on average would have been up to $5. To gain a more accurate understanding of market value According to eBay.com.au, the most MobileMuster also enlisted the help popular phones to be sold then were of eBay to see how many second- NOKIA 5110 NOKIA 1110 NOKIA 3315 less than two years old, with second hand mobiles were available on hand sales of some of the latest eBay.com.au and their asking price. LOWEST: Did not sell LOWEST: $14.50 LOWEST: Did not sell models fetching up to $500. Some HIGHEST: $36.50 HIGHEST: $28.95 HIGHEST: $51.00 of the most popular used models In the final quarter of 2009, 4,075 AVG SALE PRICE: $20.82 AVG SALE PRICE: $22.61 AVG SALE PRICE: $29.50 used mobiles were listed on eBay. to sell were less than two years old com.au with almost 40% listed for which at the time were the Nokia N around $20. The majority of which and 6000 series, Apple iPhone and some of the latest Samsung models.

The eBay spokesperson at the time Sian Gipslis said “used mobile phones and their accessories are popular items for sale on eBay and there certainly are some bargains for buyers. However the final sale price differs significantly depending 4+ 4+ on the model, condition and most importantly, YEARS YEARS OLD OLD the age of the mobile phone being listed.

Looking back at the sales for the last quarter of 2009 there were some newer models that sold very well, however, older models don’t tend 43 to bring in the same amount of dollars.” 42 MobileMuster eBay.com.au ‘watchlist’ was conducted 11–18 NOKIA 3120 NOKIA 6610 January 2010. Phones were mostly sold with cables, batteries and chargers LOWEST: $26.00 LOWEST: $5.00 43 MobileMuster (2010) Australia. HIGHEST: $32.00 HIGHEST: $43.00 A nation of Hoarders, http://www. AVG SALE PRICE: $28.67 AVG SALE PRICE: $22.36 mobilemuster.com.au/media/5924/ mobilemuster_ebay_report_vfinal.pdf 31 32 Market research result Market research result

WHERE ARE PEOPLE FIGURE 17. WHERE DID YOU SELL OR TRADE IN YOUR PHONE? FIGUREFIGURE 18. HOW 16. LIKELY HOW ARE LIKELY YOU ARE TO RECYCLE YOU TO YOURRECYCLE MOBILE YOUR PHONE? MOBILE PHONE? SELLING AND/OR TRADING IN 40 THEIR PHONES? DEFINITELY WILL EBAY/GUMTREE 35 PROBABLY WILL With the growth of online cash FRIEND/PRIVATELY 30 CASH CONVERTERS/ MIGHT/MIGHT NOT for phone programs like Mazuma PAWN BROKERS 7% Mobile, PhoneCycle, CashAPhone OTHER 25 PROBABLY NOT 7% plus the introduction of in-store MAZUMA 4% 20 DEFINATELY NOT trade in programs by Telstra and CASHAPHONE 4% 20% 15 Optus over the last 6 years people APPLE 6% PERCENTAGE (%)

were asked where they sell or trade 10 their phone. JAN-14 5

0 THE SECURITY CONSCIOUS MAR-05 MAR-06 MAR-07 MAR-08 MAR-09 MAR-10 MAR-11 MAR-12 MAR-13 MAR-14 MAR-15

MONTH Security concerns and may need it, has information/numbers on it

have been two growing reasons 52% WHEN ARE PEOPLE THINKING OF RECYCLING THEIR MOBILE? for not recycling a phone. When asked specifically,does information Most Australians (74% in 2015) said the event that prompts them to recycle on your unused phone stop you from is when they buy or receive a new handset. 16% of people listed a range recycling, 19% said yes in 2015. of other reasons including receiving a recycling envelope with the phone, This was up from 16% in 2011.44 EBAY/GUMTREE CASH CONVERTERS/ saw a collection unit in-store or at the library or it stopped working and/or 3% When asked if people knew how PAWN BROKERS battery died. 7% of people said when they were doing a spring clean.48 to delete, save and/or transfer the OTHER data would you be more likely to be SOLD TO FRIEND 12% recycle, 79% of people said yes.45 MAZUMA 3% WHAT PARTS OF MOBILE PHONES ARE PEOPLE RECYCLING? BOUNCE MOBILE 3% In terms of why having data CASHFORPHONES 2% 19% In asking people what part of a mobile phone they have recycled, most

26% on a phone stops people from FEB-15 people (80%) have recycled the batteries, more people have recycled a recycling it, the primary concern handset as well (increased from 54% to 81%), however only half have was that someone else may recycled their charger (showing a slight upward trend) and less people are access and use my information, recycling SIM cards, headsets or cases.49 followed by I might need the information later, I don’t believe the information will be destroyed FIGUREFIGURE 19. IF YOU 17. HAVE IF YOU RECYCLED HAVE RECYCLED YOUR MOBILE YOUR PHONE, MOBILE WHICH PHONE, COMPONENT? WHICH COMPONENT? with I don’t know how to delete or save and/or transfer my data to 100 BATTERY my new phone or computer.46 PHONE HANDSET 80

CHARGER LIKELIHOOD OF RECYCLING 60 SIM CARD

The percentage of people likely to recycle their mobile phones has increased HEAD SET/HANDS FREE from 20% to 35% since 2006. With 32% of people being unsure, down 40 CASE from 40% in 2006. However there is a small group of people who will PERCENTAGE (%) OTHER definitely not recycle their mobile phones, around 3% to 5% and this hasn’t 20 changed over time.47

0 MAR-06 MAR-07 MAR-08 MAR-09 MAR-10 MAR-11 MAR-12 MAR-13 MAR-14 MAR-15

MONTH 44, 45, 46 See appendix 3.16 for raw data 48 See appendix 3.17 for raw data

47 See appendix 3.17 for raw data 49 See appendix 3.18 for raw data 33 34 Market research result Market research result

ENCOURAGING PEOPLE TO RECYCLE FIGURE FIGURE20. ENCOURAGEMENT 18. ENCOURAGEMENT - AWARENESS - -AWARENESS DEFINITELY & MIGHT

Trying to understand what will encourage people to recycle has been an There are three main important objective of the market research. It is clear there are three main 100 drivers that encourage recycling – awareness, access and value. The drivers that encourage

research shows there has been little shift in the degree to which each of recycling – awareness, 80 these encourages people to recycle. access and value.

60 AWARENESS AND KNOWLEDGE PERCENTAGE (%)

40 Knowing where to find recycling bins and promotion of the program are both important drivers to encouraging recycling (on average 77% and 73% MAR-05 MAR-06 MAR-07 FEB-08 FEB-09 FEB-10 FEB-11 NOV-11 DEC-12 JAN-14 FEB-15 respectively), however over time less people advised they would definitely recycle and more people stated they might recycle.50

Likewise being asked to recycle your old phone by a sales person and more Knowing where to find recycling bins Receive an SMS message advising to More phone recycling bins recycle old phones in phone stores bins in phones stores are important drivers to encouraging recycling. More promotion of recycling programs Asked to recycle my old phone by Receiving an SMS did not score high as a way to encourage recycling from sales person of new phone 2009 to 2011. However given the increased use of smartphones, and greater consumption of information via mobile phones this may be a more effective mechanism and would be worth testing in the market to see how people respond or simply how it raises general awareness.

MONTH FIGURE 21. AWARENESS OF MOBILE PHONE RECYCLING PROGRAM IN AUSTRALIA - NATIONALLY AND BY STATE FIGURE 19. AWARENESS OF MOBILEFIGURE PHONE 19. AWARENESS RECYCLING OF PROGRAM MOBILE PHONEIN AUSTRALIA RECYCLING PROGRAM IN AUSTRALIA AWARENESS OF MOBILE PHONE RECYCLING AND HOW 100 100 IT HAS CHANGED

Awareness of a mobile phone 80 80 recycling program in Australia has grown from 46% to 78%, peaking at 84% in February 2011. Awareness 60 60 across the country does vary slightly with Adelaide, Sydney and Melbourne being more aware than Brisbane and Perth.51

PERCENTAGE (%) 40 PERCENTAGE (%) 40 This combined with additional advertising from new resellers 20 20 like Mazuma and charity based programs like YouCan entering the market in 2010 significantly boosted awareness of mobile phone 0 0 recycling generally in Australia TOTAL SYDNEYTOTAL MELBOURNESYDNEY ADELAIDEMELBOURNE PERTHADELAIDE BRISBANEPERTH RURALBRISBANE RURAL (Figure 22).

MAR-05 JUN-07 JUN-09MAR-05 FEB-11JUN-07 JAN-14JUN-09 FEB-11 JAN-14

50 See appendix 3.19 for definitely and MAR-06 FEB-08 NOV-09MAR-06 NOV-11FEB-08 FEB-15NOV-09 NOV-11 FEB-15 might recycle data MAR-07 FEB-09 FEB-10MAR-07 DEC-12FEB-09 FEB-10 DEC-12 51 See appendix 3.20 for raw data 35 36 Market research result Market research result

FIGURE 22. SEEN ADVERTISING FOR MOBILE PHONE RECYCLING – UNPROMPTED FIGURE 20. SEEN ADVERTISING FOR MOBILE PHONE RECYCLING – UNPROMPTED ACCESS

40 Surveys show convenience is an important driver in encouraging recycling,

MAR-06 with drop off points in supermarkets and Australia Post outlets or receiving 35 MAR-07 a free recycling satchel when purchasing a new phone or being delivered at 30 JUN-07 home were cited by consumers as having a similar level of encouragement. FEB-08 25 FEB-09 Convenient access to recycling is not as strong as an incentive as a personal FEB-10 20 FEB-11 financial driver with only 50% dropping down to 35% saying convenience

15 NOV-11 will definitely encourage them to recycle and 35% to 40% saying it might PERCENTAGE (%) 5 DEC-12 encourage them. 4 10 JAN-14 FIGURE 22. ENCOURAGEMENT - ACCESS FEB-15 5 FIGURE 24. ENCOURAGEMENT - ACCESS - DEFINITELY & MIGHT 0

TOTAL SYDNEY MELBOURNE ADELAIDE PERTH BRISBANE 100 CITY

The direct relationship between consumer awareness and investment in advertising and promotional activities is very strong. With the launch of the 80 new brand MobileMuster annual expenditure on marketing from 2006/07 to 2009/10 was just over $2.0 million per annum, of which over three quarters was spent on advertising, primarily TV.52 With declining revenues investment on advertising and promoting however the program dropped to PERCENTAGE (%) 60 less than $1 million per annum in the past three years. Correspondingly, general awareness of mobile phone recycling is starting to drop off.

40 ENVIRONMENTAL BENEFITS

MAR-05 MAR-06 MAR-07 MAR-08 MAR-09 MAR-10 MAR-11 MAR-12 MAR-13 MAR-14 MAR-15 Knowing that the environment will benefit due to , and keeping phones out of landfill encourages 70% to 80% to recycle. CAN WE FOCUS ON THE THREE YEARS? MONTH Environmental benefits, like support for charities and accessibility, aren’t as strong as an incentive as personal financial drivers to recycle. Around 40% Pre-paid satchels delivered A local E- day Local council to run a drop off to me at home day every 6 months to 50% of people say environmental benefits will definitely encourage them to recycle and 30% to 40% say it might encourage them.53 Receive a reply paid satchel Free reply paid satchels (envelopes) Recycle bins at local supermarket with my new phone that you can pick up at local shopping centres supermarkets and then post FIGUREFIGURE 23. 21. ENCOURAGEMENT ENCOURAGEMENT - ENVIRONMENTAL - ENVIRONMENTAL BENEFITS BENEFITS - DEFINITELY & MIGHT Pre-paid post satchel for You can put your old mobile phones A at Australia free return in your recycling bin at home Post outlets 100

80 AT WHAT LOCATIONS DO PEOPLE MOST WANT TO RECYCLE THEIR PHONES?

60

PERCENTAGE (%) Convenience is essential to increasing the likelihood of recycling. The top locations that consumers have cited would encourage them to recycle 40 continue to be supermarkets, Australia Post outlets and mobile phone retailers either by dropping off or getting a recycling satchel.55 MAR-05 MAR-06 MAR-07 FEB-08 FEB-09 FEB-10 FEB-11 NOV-11 DEC-12 JAN-14

MONTH 52 Since 2002/03 to 30 June 2015, AMTA has spent over $16.4 million on 54 Knowing the phone will not go Knowing the phone parts will Knowing the phone parts will be marketing, $11.8M of that on advertising See appendix 3.22 for data into landfill, preventing be broken down & recycled, broken down and recycled, 53 55 harmful toxins from polluting reducing the destruction of reducing the need to use natural See appendix 3.21 for definitely and See appendix 3.22 for definitely and the environment natural environments resources (e.g. metals) might recycle data might raw data 37 38 Market research result Market research result

PERSONAL FINANCIAL BENEFIT There isn’t a lot of variation between the type of charity that benefits although there does appear to be a slight preference for cancer charities. Consumers consistently cite receiving a financial reward as providing Planting trees as an incentive to recycle was initially quite strong but after the highest incentive to recycle, with a cash return of at least $5, a few years started to drop off. There is less incentive to recycle where the however this has declined over time from over 90% to 80%. Receiving benefit is going to support a charity overseas. a $5 supermarket voucher or credit on their mobile phone account is not considered as encouraging as cash but still more of an There isn’t a significant differentiation between the charity benefiting encouragement than a $5 voucher to spend at a mobile phone retailer. financially or having the phone to reuse themselves. But once again there is greater preference of the phone to be reused by a charity in Australia While only asked once in 2005, a refundable deposit of $10 scored poorly than overseas. at encouraging recycling relative to other incentives, with 58% being inclined to definitely or maybe recycle their mobile phone.56 FIGUREFIGURE 26. 24. ENCOURAGEMENT ENCOURAGEMENT - CHARITY - CHARITY - DEFINITELY & AWARE

FIGURE 25. ENCOURAGEMENT - FINANCIAL DRIVERS - DEFINITELY & MIGHT FIGURE 23. ENCOURAGEMENT - FINANCIAL DRIVERS 100

100 80

80 60

60 40 PERCENTAGE (%)

40 MAR-05 MAR-06 MAR-07 MAR-08 MAR-09 MAR-10 MAR-11 MAR-12 MAR-13 MAR-14 MAR-15 PERCENTAGE (%)

YEAR MAR-05 MAR-06 MAR-07 MAR-08 MAR-09 MAR-10 MAR-11 MAR-12 MAR-13 MAR-14 MAR-15

YEAR Knowing the phone will be Knowing the phone will be given to a Funds donated to animal $2 donation to a youth refurbished and sold to charity for reuse/funds from the sale welfare/conservation cause/charity developing countries of the phone will be donated to charity Receive 6 free prints of my own Receive a $5 discount voucher to *Receive $25 for every *Receive $1 for every photos as postcards spend at my local mobile phone retailer handset recycled handset recycled Funds donated to poor people Funds donated to schools in AU Funds donated to support cancer $2 donation to an overseas to prevent cyber bullying research environmental cause/charity Receive a $5 discout voucher to Knowing the phone will be sold for reuse *Receive $10 for every $1 refundable deposit paid spend at my local supermarket overseas in developing countries handset recycled at time of phone purchase Phones recondition for use by Donating it to charity for them Funds donated to Guide Dogs AU $2 donation to a social low income or underprivledged to claim a $2 rebate cause/charity Receive a $5 credit on my Receive an online music voucher *Receive $5 for every $10 refundable deposit paid community group mobile phone bill to the value of $5 handset recycled at time of phone purchase

Knowing the phone will be Donating it to charity for them Funds donated to the Donating phone to charity refurbished and given to charity to claim a $1 rebate Salvation Army overseas in developing countries CHARITY - TYPE, LOCAL VERSUS OVERSEAS, REUSE

Knowing the phone will be refurbished A tree will be planted for every Funds donated to the Smith Family Knowing that a charity would benefit financially does encourage and given to charity in AU handset I recycle people to recycle but not quite as much as a personal financial benefit with between 82% to 66% of people saying they definitely would or most likely would recycle where a charity benefits. The proportion that would definitely recycle if a charity benefited is less than those who would if a personal financial benefit of $5 or more was involved.

Charity isn’t as strong of an incentive to recycle with less people saying they would definitely recycle if they know a charity will benefit and more saying they might. As with other drivers there seems to be a slight downward trend over time in the proportion of consumers saying that if 57 a charity benefits this will provide an incentive for them to recycle. 56 See appendix 3.24 for definitely and might recycle data

57 See appendix 3.25 for definitely and might recycle data 39 40 Market research result Market research result

COLLECTIONS VOLUMES AND TYPE OF MATERIALS COLLECTED

Since the program started in late 1998, COLLECTION NETWORK – DROP OFF OR POST IN DROP OFF MobileMuster has MobileMuster has diverted more than 1,168 tonnes of mobile phones and their accessories from landfill, 59 Access to recycling in terms of number, density per population, type diverted more than including an estimated 9.95 million handsets (3.89m) and batteries (6.01m). and geographic spread has improved dramatically. The extent of 1,168 tonnes of mobile the public drop off network has grown five-fold with now one public phones and their Specifically, over the past decade annual collections have grown from 42 collection point for every 4,700 people, down from 26,300. tonne to 74 tonne in 2014/15, peaking at 122 tonne in 2008/09. The accessories from landfill. annual collection rate of available phones has grown from 14% to 53.1%, Consumers can now recycle their phones by either dropping them peaking at 53.2% in 2012/13 and the annual net import collection rate off at one of the 1,900 mobile phone retailers, 1,200 other retail has increased from 4.2% to 9.0%, peaking at 9.9% in 2011/12. outlets like Officeworks, Battery World and Salvo Stores, 1,500 local council sites or they by posting58 them in for free using a recycling satchel available at any of the 3,800 plus Australia Post outlets or FIGURE 28. TOTAL WEIGHT COLLECTED

downloading a mailing label from the MobileMuster website. (VIC, TAS, SA, WA, FIGURE 26. TOTAL WEIGHT COLLECTED NT Stores Only)

There has also been substantial growth and diversification in 140 the private collection network expanding from just service/ POST IN repair centres and distributors to now also include workplaces, 120 schools and second hand dealers of mobile phones (i.e. who refurbish and sell phones either locally or off shore). 100 FIGURE 25. COLLECTIONS BY CHANNEL 80 TONNES FIGURE 27. COLLECTIONS BY CHANNEL 60

40

100 MOBILE PHONE RETAILER 20 90 REPLY PAID OTHER RETAILER 80 0 SERVICE CENTRE 1998/99 1998/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 70 COUNCIL & KERBSIDE YEAR 60 GOVERNMENT

CORPORATE & NFP & EDUCATION 50 RESELLER REFURBISHER & RECYCLER 40 MANUFACTURER Over time the mix of components by weight has changed from a PERCENTAGE (%) 30 MOBILE PHONE REPAIR SHOPS predominance of batteries and accessories to handsets and accessories. This in part is due to manufacturers replacing two NiCad batteries with one 20 DISTRIBUTORS CARRIER Lithium Ion batteries that are lighter and last longer and weigh a quarter 10 60 SCHOOL the weight of a Nickel Cadmium battery. 0

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 In the past five years there has also been a gradual decline in the volume of accessories received. This can be attributed to both harmonising of YEAR chargers across models to a USB plug, the decreasing size and weight of chargers and in some cases chargers no longer being sold with handsets.61 COLLECTIONS BY CHANNELS

As expected with the diversification of the collection channels we have seen a shift in collections with a third of collections now coming through the post back option. Less product comes through service 59 See appendix 3.26 for raw data centres and more through other retailers. 58 Reply paid satchels were introduced 60 Nickel cadmium batteries average in 2008 and are now available to the weight 120 gram, lithium ion average public either at over 3,800 Australian weight 27grams, see appendix 25 for Post outlet or included with a new raw data phone by many of MobileMuster’s manufacturer members 61 See appendix 3.27 for raw data 41 42 Market research result Discussion

FIGURE 29. MOBILE COMPONENT COLLECTIONS

FIGURE 27. MOBILE COMPONENT COLLECTIONS ACCESSORIES HANDSETS BATTERIES

100

90

80

70

60

50

40 PERCENTAGE (%) 30

20

10

0

1998/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 YEAR DISCUSSION

While there has been a gradual decrease in the average weight of handsets collected, this is expected to change over time as a result of the increasing Australians have embraced mobile technology since size of newer handsets and the weight of imported handsets increasing. 1987 when the first official call was made using an analogue mobile phone. The relentless growth in TYPE OF HANDSETS RECEIVED mobile services and evolution from bulky voice-only handsets to today’s broadband-enabled smartphones With the analogue and CDMA networks shutting down in 1999 and 2008 respectively, the number of CDMA handsets collected peaked in 2007/08 has been a global phenomenon. and by 2011/12 had reduced to very insignificant levels.62 It will be interesting to see how the closing of the 2G network at the end of 2015 will impact the type and weight of handsets collected. Compiling 10 years of market research on consumer mobile phone use and recycling behaviours allows the AMTA to review how consumer behaviour has changed over the past decade, what has driven these changes, how FIGURE 30. TYPES OF HANDSET RECYCLED it has affected the performance of MobileMuster - the industry’s official

FIGURE 28. TYPES OF HANDSETS RECYCLED GSM CDMA ANALOGUE recycling program - and more importantly consider what this means for the future direction of mobile phone stewardship in Australia over the next 10 years. 35000

30000 HOW LONG DO PEOPLE OWN/USE THEIR PHONE? 25000

20000 People’s use of their mobile phone is driven by a combination of contract type, age of user and technology developments. Over the past 10 years 15000 most people on contracts replace their phone every two years, this hasn’t KILOGRAMS (KG) 10000 changed significantly over time. However, pre-paid users either replace them within 12 months (younger people 18 to 24 years old) or in the case 5000 of older people (50+) are starting to keep them for more than two years.

0 Replacing the phone however does not mean relinquishing ownership or 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 throwing it in the bin. Quite the opposite, as in many countries across the

YEAR globe, most people (60%) keep their previous phone even if it isn’t working. This behaviour has not changed over the past decade and significantly 62 See appendix 3.28 for raw data restricts the volume of phones that can be collected by MobileMuster. 43 44 Discussion Discussion

From a broader product stewardship perspective it also represents a less Taking a circular approach to resource use there is a clear imbalance then efficient use of finite non-renewable resources.With the equivalent of between mobile use and recovery of mobiles for reuse and recycling. more than two years worth of imports laying idle in homes that is a significant number of phones that could either be put to use in developing countries or To ensure non-renewable resources used in mobile phones are used more a large volume of very recyclable and non-renewable resources that could efficiently and sustainably the industry needs to either; increase the volume be recovered and returned to the supply chain. of phones collected for recycling and reuse and/or increase the product life span to reduce the rate of consumption.

This is possible but will require a significant change in consumers hoarding behaviours through education and incentives, technical innovations to improve the product’s durability, data security and upgradability (e.g. ENVIRONMENTAL BENEFITS OF RECYCLING Fairphone) and novel contractual arrangements such as leasing (i.e. Telstra’s New Phone Feeling or similar plans offered by carriers in the United States and more recently by Apple).

22.5 MILLION WHY DO PEOPLE REPLACE THEIR PHONE? Poor functional performance63 has been the primary reason for replacing a phone for many years. However, when there is a significant change PHONES IN STORAGE or improvement in technology, as in the case of the smartphone, a very strong desire for the latest technology becomes the overwhelming driver for (INCLUDING THEIR BATTERIES) consumers. This has been the case in Australia from 2010 to 2014 with the release of the iPhone 4 in July 2010 where imports peaked at 13.3 million in 2010/11.

As the rate of technology change slows however, so do a consumer’s reasons for replacing their phone. Seeking the latest technology is now no WOULD REDUCE longer the primary reason for buying a new phone. Similarly more people THE NEED TO MINE148,150 TONNES are starting to keep their current phone for two or more years. OF PRECIOUS METALS It is not clear whether this is a reflection of a saturated market where there is an emerging consumer desire for longer life products that can be more easily repaired and upgraded or simply a reflection of the cycle of technological advancement.

WHICH HAS ENVIRONMENTAL BENEFITS EQUIVALENT TO: WHAT ARE THE IMPACTS OF STORING PHONES?

Like in many developed64 countries the number of mobile phones in storage PLANTING OVER KEEPING has grown over the past 10 years in Australia to a point in 2014 where there were as many phones in storage as there are people in Australia. TREES CARS 110,730 5,110 However, for the first time in 10 years the number of phones in storage OFF THE ROAD in 2015 dropped by more than half a million to 22.5 million, as did the percentage of people with two or more phones in storage.65 PREVENTING DIVERTING TONNES While there has been no significant change in the proportion of people 18,230 TONNES who keep their old phone over the past decade, there have been changes OF C02 GREENHOUSE OF POTENTIALLY HARMFUL in what consumers do with those phones they don’t keep. Specifically, less GAS EMISSIONS SUBSTANCES FROM LANDFILL 63 Phone deteriorating/not working people throw them out in the rubbish now, more people are recycling them, and more people are starting to trade and resell their phones. 64 Green Alliance (2005)

65 See appendix 3.12 45 46 Discussion Discussion

It is too early to say if these slight changes in keeping, selling or recycling ENCOURAGING PEOPLE TO RECYCLE mobile phones is the start of a consumer trend towards a more sustainable use of mobile phones. Especially given that more people have indicated they will keep their phone in storage for two plus years compared to one in In terms of what encourages people to recycle, the three main drivers have five people 10 years ago. remained the same for the past 10 years.

While storing mobiles represents a deferral in the phones being reused or recycled, i.e. a lost opportunity for closing the loop on material use and pursuing high levels of resource use efficiency, it does mean that they aren’t being thrown into landfill. VALUE AWARENESS ACCESS (personal or community benefit) (why, where and how) (convenience)

VALUE - THE ROLE OF INCENTIVES

People clearly value their phones and a cash incentive remains the strongest driver in encouraging people to recycle. This trend is illustrated by the steady growth in the online cash for phones market over the past five years and the gradual increase in the number of people who are selling their phones.

While community benefit encourages people to recycle as demonstrated by many of MobileMuster’s ‘old phones for good’ campaigns, it is not as strong as HELPING PEOPLE RECYCLE - BARRIERS AND DRIVERS a personal cash return and seems to becoming a weaker incentive over time.

Feedback received from Australian charities suggests the quality and type So why are people holding onto Hopefully, this in part is being It is also a reflection of people’s lack of phones received are of lower value and that the proportion of phones their old mobiles and what can the addressed by MobileMuster’s of knowledge on how to save and received for resale appear to be dropping. This in part could be due to the industry do to shift this behaviour education program for schools, transfer their data plus a lack of trust fact that people can sell their phones more easily now. and increase reuse and recycling? where students learn about the full in the recycling process with concerns life cycle of a mobile phone from over data being accessed and used There is a similar example in New Zealand, where the Starship Foundation Storing phones primarily reflects manufacture to recycling. by others illegally. This suggests our has decided after six years of raising funds through turning old unwanted the consumers desire to have a phones are in essence becoming phones into valuable funds that this is no longer an effective way to raise backup. This has been the primary Industry also needs to look further personal data storage devices. money for the foundation. reason for the past 10 years. into how it can reduce consumer Lesser reasons included giving it to desire for backup phones. While Given the high uptake of The reason given by the Foundation for making this decision was that their children as a toy, it was expensive, some carriers and manufacturers smartphones this is not surprising recent experience suggests people are holding onto new smartphones for I may be able to sell it, sentimental now provide loan phones when and sends a message to longer, selling them or passing them on to family and friends and that the reasons, and I might be able to a phone is being repaired and manufacturers, retailers, resellers supply and value of phones for the Foundation to resell and raise funds has repair it or use it overseas. others offer second hand phones and recyclers about the growing diminished over time.66 to purchase if a phone cannot be need to help consumers manage With awareness of mobile phone repaired, the impact on keeping a their data safely and securely. If While the increased growth in selling and trading mobiles phones is positive recycling at 80%, consumers do not backup hasn’t been significant. not addressed, this could become in driving greater reuse of newer phones, it would appear that pure altruistic see recycling a mobile phone for a significant barrier to increased or ecological drivers alone, are increasingly ineffective in driving collections material recovery as its best use, In addition, more people are citing reuse and recycling of mobile for recycling and that the value of the material in phones is still not sufficient especially if it is still working. having information on a phone and phones into the future. enough to pay consumers what they expect to recycle their phones. data security as their reason for Educating consumers to realise that keeping their phone and avoiding Not knowing you could, or where to, This gap in consumer expectation and what industry is prepared to fund is recycling their mobile rather than disposal or recycling. This was not a recycle is less of a reason these days, a significant challenge.Perhaps it is time for the industry to consider more storing it at home (when no longer reason 10 years ago and is a reflection but interestingly not sure what to do with novel ways to fund the collection and recycling of phones, such as introducing in use) is a very challenging task. It a consumer levy on the sale of each handset which would be used to fund of the vast amount of information that it has increased, possibly suggesting 66 https://www.starship.org.nz/ works against many current beliefs can now be stored on phones. people now realise they have a choice foundation/fundraising/mobile- consumer financial rewards rated highly by consumers in this research that reuse is better than recycling. of selling, recycling or keeping. phone-appeal/ such as, credit on mobile phone credit or vouchers at supermarkets. 47 48 Discussion Conclusion

AWARENESS - THE ROLE OF MARKETING

It is clear that effective advertising and promotions has a direct impact on awareness and engagement of consumers and that if promotions are not maintained to a certain level awareness and collections will drop.

As evident of the past three years of MobileMuster where reduced marketing expenditure has seen a reduction in awareness and drop in collections. In particular knowing where, why and how to recycle remain important drivers to encourage recycling.

With most people citing that purchasing a new phone was the event that prompted them to recycle it is crucial retailers consistently remind customers around the time of purchase why, where and how they can recycle or reuse their old phones to maximise collection and recycling rates of unwanted or redundant phones.

Manufacturers are also optimally placed to positively intervene through CONCLUSION increased and timely consumer communications to raise awareness and engagement. There have been some significant shifts in behaviour ACCESS - THE ROLE OF COLLECTION NETWORKS over the past ten years. More people are aware of how, why and where to recycle with awareness of In terms of access with more than 4,800 public drop off points and a free post mobile phone recycling growing from 46% to 79%. back option using either a recycling satchel or downloading a label from the MobileMuster website, it could be argued the public have very good access. More people are recycling with collections increasing from 42 tonne per annum to 74 tonne in 2014-15, But is this most preferred and cost effective collection network? Can people peaking at 122 tonne in 2008/09 and the annual recycle their phones from the places they buy them? From the market research people say they are most likely to recycle at the local supermarket available collection rate growing from 14.1% to and Australia Post stores, i.e. places that are visited frequently. 53.1% peaking at 53.2% in 2012-13.

While all major mobile phone retailers host collection points and assist in encouraging their customers to recycle in store, Australia Post has elected to distribute free recycling satchels to customers rather than host collection points. Less people are disposing their phones into landfill, decreasing from 9% to 2%. Similarly, with the recent growth of online cash for phone and On the other hand, local supermarkets, who also retail mobile phones trade-in programs, more people are selling or trading in their phones as have been very be reluctant to host collection points or offer satchels to a way of recovering some financial return, up to 6%. customers, even though many of their overseas counterparts, like Tesco’s for example, offer mobile phone recycling to their customers. Consumer desire however to keep old phones remains unchanged (60% even if not working). As a result the number of unused phones stored away in While Australian supermarkets have been active players on some homes has grown from 12 million to over 22.5 million in the past decade. environmental measures such as packaging and energy efficiency, the This equates to nearly one phone for every person in Australia. breadth of initiatives related to phone recycling and handheld batteries is embryonic at best. Storing of phones represents a significant loss of resources, creating an unsustainable balance between the rate of consumption and the rate of Collecting phones at local council drop off days or with TVs and computers reuse and recycling, with substantially more mobiles sitting dormant in is least preferred. The possibility however of recycling mobile phones along homes rather than being reused or responsibly recycled. with batteries, globes or other small electronics, as in the case of the City of Sydney offering integrated collection units located in libraries, improve convenience. Financial incentives, awareness and access continue to be the three main drivers which encourage people to recycle, with personal financial rewards continuing to be the primary motivation. While MobileMuster has raised awareness and made recycling widespread and very accessible, altruistic incentives appear to becoming less of a driver in recent years as a way of encouraging people to recycle their old phones. 49 50 Conclusion Conclusion

Certain social themes and factors are also relevant within the context of The potential for significant environmental advances across the mobile personal motivation and key drivers where it appears from the research phone life cycle will start to emerge when greater focus is applied to that there are essentially four recycling personality types: monetising functionality and ‘service’ as opposed to just purchasing a manufactured item.

Greater engagement and coordination of activities and reporting by all players of the mobile phone lifecycle is also required to improve consumer awareness and access to recycling. From manufacturers, network carriers, retailers and service centres/repairers, through to second-hand traders and recyclers, including: THOSE THAT WILL THOSE THAT NEED A RECYCLE AS SOON REMINDER AND AN AS THEY KNOW WHY, ADDITIONAL REASON WHERE AND HOW TO RECYCLE NON-PARTICIPATING NON-PARTICIPATING SERVICE CENTRE/ such as seeing something or someone benefiting from the MANUFACTURERS/ RETAILERS REPAIRERS phone being recycled – e.g. DISTRIBUTORS e.g. Coles, Woolworths, Harvey to ensure that all mobiles cash to a charity, planting Normans, Kogan, eBay, and and accessories that cannot trees, or being reused by e.g. Apple, Sony Mobile, other mass retailers who sell be repaired are recycled people in need LG, Blackberry, ALDI and Oppo to promote and offer mobiles - to include consumer as well as encouraging recycling as well as publicly messaging on recycling, as customers to recycle reporting on collections well as offering a free collection and recycling processes service or providing post back alternatives

THOSE THAT WANT A THOSE THAT WILL FINANCIAL REWARD NEVER RECYCLE SECOND-HAND RECYCLERS some may be happy with a fortunately this represents TRADERS voucher or discount on their less than 5% of respondents e.g.MRI, PGM, Sims to mobile phone bill, others e.g. Mazuma Mobile, Cash ensure that all mobiles and want cash A Phone, PhoneCycle, eBay, accessories are recycled GumTree, Cash Converters, responsibly and report publicly Boomerang and Bounce on volumes processed and to ensure product not sold material recovery rates is recycled responsibly Technological developments substances. The avoidance of • Streamlining repair and and contribute to recycling have had both positive and conflict minerals has also been replacement of damaged phones schemes in markets where negative impacts on mobile a noteworthy achievement. second hand product is sold phone recycling in Australia. They • Making data management have driven rapid consumption The research data also points and security a simple yet of resources as functionality is towards several implications and robust process opportunities for the future of mobile enhanced (e.g. introduction of • Offering innovative and attractive phone stewardship in Australia. Continuing research to monitor changes in consumer mobile phone the smartphone) and made past contracts that encourage the use, recycling, storage, reuse and the extent of phones available technology redundant as networks return of mobiles (i.e. 1 in 1 out, The storage of old mobile phones is for recycling is required. The market research to date has been a are upgraded (e.g. CDMA). They trade-in, leasing, product-service still a significant issue, representing particularly useful tool in guiding the program’s marketing activities have also improved resource ownership initiatives) efficiency through miniaturisation, a lost opportunity for reuse and and the development of its collection network. It has also provided dematerialisation and use of recycling. There are compelling • Explore novel ways to fund the deeper insights into the triggers and motivations behind Australian recycled content. Advances in reasons for industry to look more collection and recycling of phones (e.g. consumers, and why they choose to participate in recycling programs. product design and production closely at how it can change or a consumer levy on the sale of each methods have also reduced adjust consumer desire to keep a handset to fund financial incentives). This will ensure that the program adapts to ever-changing use and disposal specific types of environmental phone as a back-up by: patterns as well as the need to accurately monitor the effectiveness of impacts through the elimination program activities on consumer behaviour and the associated impacts of or minimisation of hazardous • Improving the product’s durability technology and markets. and upgradability 51 52 References Appendices

REFERENCES APPENDICES

Australian Mobile Fear, J., 2008, Stuff happens: Telecommunication Association Unused things cluttering up our Page Page Page (AMTA) 2005 Australian Mobile homes, The Australia Institute, 1.0 Key performance indicators 3.10 What happened to your 3.20 Awareness of mobile Telecommunications industry: viewed 16 July 2015, 2014/15 to 2018/19 53 previous mobile phone? 58 phone recycling 61 Economic Significance - The Allen http://apo.org.au/node/603. 3.11 What are you planning to 3.21 How much environmental Consulting Group. 2.0 Market research survey timeline 54 do with your current phone benefits encourage recycling 62 Tanskanen, Pia, 2009, Electronics when you get a new one? 58 3.0 Market research raw data 55 3.22 How much access ACMA, December 2014, Waste: Recycling of Mobile Phones. 3.12 Number of phones not in encourages recycling 62 Communications report 2013–14. 3.1 Shipments, imports, exports, current use 58 market share 55 3.23 Likelihood to recycle at the 3.13 Number of phones Randy O. Frost, Veselina Hristova, following outlets 63 3.2 How many mobile phones in Australian Households 59 Credit Suisse First Boston, 2005, Gail Steketee, David F. Tolin, 2013, have you ever owned? 55 3.24 How much personal financial Australian Telecommunications Activities of daily living scale in 3.14 If storing how long do you incentives encourage recycling 63 3.3 Number of phones in expect to keep your phone for? 59 2005, Equity Research. hoarding disorder, Journal of 3.25 How much charity benefits Obsessive-Compulsive and Related current use 56 3.15 Why are you not recycling encourage recycling 64 Disorders, Volume 2, Issue 2, 3.4 How long would you expect the old phone that you kept? 60 Gertsakis, J. Facilitating EcoDesign Pages 85-90. to use your new phone for? 56 3.26 Estimated number of batteries and Product Stewardship in 3.16 Why does the information on and handsets received 65 3.5 Length of ownership by your unused phone stop you Australia. Masters Thesis, RMIT 3.27 Battery and component plan type 56 from recycling it? 60 University, Melbourne 2003. Telstra/Nielsen, 2014, Cross-platform percentages and weights Consumers: Media Multitasking and 3.6 Reason for obtaining 3.17 How likely are you to recycle being recycled 65 Multi Screening in Today’s Mobile current phone 57 your mobile phone? 60 Green Alliance, 2015, A circular 3.28 Types of handsets recycled Landscapte, Whitepaper. 3.7 Brand of current mobile phone 57 economy for smart devices. 3.18 Have you ever recycled any by weight (kg) 66 Opportunities in the US, UK 3.8 Where are people buying part of an old mobile phone? 61 and India. their phones from? 57 3.19 How much awareness 3.9 When do people buy / encourages recycling 61 receive their new phone? 57 International Data Corporation (IDC), 2005, No Strings Attached: Australian Cellular Forecast and Analysis, 2004-2009. 53 54 Appendices Appendices

APPENDIX 1.0: KEY PERFORMANCE INDICATORS APPENDIX 2.0: MARKET RESEARCH SURVEY TIMELINE

2014/15 2015/16 2016/17 2017/18 2018/19 • March 2005 – Consumer (900, age 15+ ) and business (200) telephone KEY PERFORMANCE INDICATORS Est’d Est’d Est’d Est’d Est’d interviews and 20 stakeholder face-to-face interviews conducted by The Klien Partnership Demographically representative of population, 87% owned mobiles 13% didn’t own mobiles COLLECTIONS Mobile Phone Collections (weight - tonnes) 100 106 113 120 127 • March 2006 – online consumer (n=650, 16-64 years) survey by IPSOS – Annual Collection Rate, Available Phones (%) 51% 52% 53% 54% 55% Syd, Melb, Adel, Perth, 100% owned mobiles Annual Collection Rate, Net imports (%) 10.20% 10.40% 10.60% 10.80% 11.00% • March 2007 – online consumer (n=665. 16-64 years) survey by IPSOS – Syd, Melb, Adel, Perth , 100% owned mobiles RECYCLING • July 2007 - online consumer (n=658, 16-64 years) survey by IPSOS – Diversion from Landfill 97% 97% 97% 97% 97% Syd, Melb, Adel, Perth , 100% owned mobiles Recycling Rate (estimated material recovered) 96% 96% 96% 96% 96% • February 2008 - online consumer (n=670, 16-64 years) survey by IPSOS – Syd, Melb, Adel, Perth. , 100% owned mobiles CONSUMER BEHAVIOUR • June 2008 – online consumer survey (n=704, 18-64 years) Newspoll Personal Storage Rate (% users with 2 or more 37% 37% 37% 37% 37% Sydney, Melbourne, Brisbane, Adelaide and Perth , 100% owned handsets at home) mobiles, Assessing the effectiveness Old phones for Trees advertisement Disposal to Landfill Rate 2% 2% 2% 2% 2% on driving behaviour Awareness of Mobile Phone Recycling >80% >80% >80% >80% >80% • November 2008 – online consumers survey (N=1048, 18+) Omnibus, IPSOS Assessing the effectiveness of advertising campaign on INDUSTRY PARTICIPATION driving behaviour 56% 56% 56% 56% 56% Manufacturers • February 2009 – online consumer (n=665, 16-64 years) survey by Mobile Network Carriers 91% 91% 91% 91% 91% IPSOS. Syd, Melb, Adel, Perth , 100% owned mobiles • June 2009 – online consumers survey (N=1045 18+) Omnibus, IPSOS Assessing the effectiveness of “Old phones more trees” advertising campaign on driving behaviour • November 2009 – online consumers survey (N=1045 18+) Omnibus, IPSOS Assessing the effectiveness of “Dive In” advertising campaign on driving behaviour and looking at value and age of mobiles in storage • February 2010 – online consumer (n=680, 16-64 years) survey by IPSOS. Syd, Melb, Adel, Perth , 100% owned mobiles • February 2011 - online consumer (n=679, 16-64 years) survey by IPSOS. Syd, Melb, Adel, Perth , 100% owned mobiles • November 2011 - online consumer (n=1000, 16+, nationally representative sample – metro and regional) survey by IPSOS. Due to a need to profile those who are aware of mobile recycling and those who are not, a change to a more nationally representative sample was necessary. Any major changes in the data were looked at filtered by the previous sample specs to ensure changes were real and not as a result of altered sample definition. • December 2012 - online consumer (n=1027, 16+, nationally representative sample – metro and regional) survey by IPSOS. • January 2014 - online consumer (n=1029, 16+, nationally representative sample – metro and regional) survey by IPSOS. • February 2015 - online consumer (n=1050, 16+, nationally representative sample – metro and regional) survey by IPSOS. 55 56 Appendices Appendices

APPENDIX 3.0: MARKET RESEARCH RAW DATA 3.3 NUMBER OF PHONES IN CURRENT USE

3.1 SHIPMENTS, IMPORTS, EXPORTS, MARKET SHARE Date One Two Three 4 Or more

Member Year Shipments Imports Exports market shares Feb-08 79.0% 17.0% 3.0% 1.0% Feb-09 77.0% 19.0% 4.0% 1.0% Feb-10 77.0% 19.0% 3.0% 1.0% 1998/99 3,907,832 Feb-11 78.0% 18.0% 3.0% 2.0% 1999/00 4,288,786 Nov-11 76.0% 18.0% 3.0% 1.0% 2000/01 3,822,544 Dec-12 79.0% 18.0% 2.0% 1.0% 2001/02 4,900,000 Jan-14 80.0% 17.0% 2.0% 0.0% 2002/03 4,977,613 Feb-15 79.0% 18.0% 2.0% 1.0% 2003/04 7,122,832 2004/05 7,827,531 2005/06 8,406,642 9,525,714 1,175,045 88% 2006/07 8,679,094 10,231,520 1,239,540 85% 2007/08 9,675,482 11,495,358 1,050,141 84% 3.4 HOW LONG WOULD YOU EXPECT TO USE YOUR NEW PHONE FOR? 2008/09 9,026,572 11,148,806 1,437,921 81% Under 6 12 - 18 19 - 24 2009/10 8,664,111 11,992,400 1,432,945 72% Date months 6 - 11 Months Months Months 2+ Years Don’t know 2010/11 8,703,384 13,348,294 2,276,995 65% 2011/12 7,796,532 12,784,881 1,844,143 61% Mar-06 0.6% 3.5% 25.5% 25.8% 40.7% 3.8% 2012/13 6,667,937 11,971,921 1,788,383 56% Mar-07 0.2% 3.8% 21.8% 28.0% 42.6% 3.7% 2013/14 6,204,913 11,225,341 2,022,293 55% Jun-07 0.4% 3.1% 18.2% 26.5% 46.9% 4.9% 2014/15v 5,564,751 12,265,096 1,484,431 45% Feb-08 0.0% 2.0% 17.0% 21.0% 54.0% 7.0% TOTAL 05-15 79,389,418 115,989,331 15,751,837 Feb-09 1.0% 3.0% 16.0% 21.0% 51.0% 7.0% Feb-10 1.0% 4.0% 15.0% 29.0% 44.0% 7.0% Feb-11 0.0% 3.0% 16.0% 27.0% 47.0% 7.0% Nov-11 1.0% 3.0% 15.0% 24.0% 51.0% 6.0% 3.2 HOW MANY MOBILE PHONES HAVE YOU EVER OWNED? Dec-12 1.0% 3.0% 11.0% 24.0% 54.0% 7.0% Jan-14 0.0% 2.0% 10.0% 23.0% 57.0% 8.0% Feb-15 1.0% 3.0% 11.0% 25.0% 55.0% 4.0% Date One Two Three 4 Or more

Mar-05 26.0% 24.0% 21.0% 29.0% Mar-06 7.0% 19.0% 26.0% 48.0% 3.5 LENGTH OF OWNERSHIP BY PLAN TYPE Mar-07 8.0% 16.0% 25.0% 51.0% Jun-07 6.0% 18.0% 24.0% 52.0% Date Under 6 months 6 - 11 months 12 - 18 months 19 - 24 months 2+ years Don’t know Feb-08 7.0% 19.0% 26.0% 48.0% Feb-09 11.0% 17.0% 24.0% 49.0% Mar-05 6.0% 8.0% 17.0% 8.0% 60% 2.0% Feb-10 8.0% 17.0% 21.0% 54.0% Nov-11 3.0% 8.0% 20.0% 21.0% 46.0% 2.0% Feb-11 7.0% 14.0%4 23.0% 56.0% Dec-12 3.0% 5.0% 18.0% 22.0% 50.0% 2.0% Nov-11 8.0% 14.0% 22.0% 57.0% Jan-14 2.0% 5.0% 14.0% 23.0% 52.0% 3.0% Dec-12 8.0% 16.0% 20.0% 57.0% Feb-15 3.0% 5.0% 16.0% 24.0% 51.0% 2.0% Jan-14 6.0% 16.0% 20.0% 58.0% Average 1 2.8% 5.8% 17.0% 22.5% 49.8% 2.3% Feb-15 6.0% 14.0% 23.0% 57.0% 57 58 Appendices Appendices

3.6 REASON FOR OBTAINING CURRENT PHONE 3.10 WHAT HAPPENED TO YOUR PREVIOUS MOBILE PHONE?

Wanted Not Kept it Gave it to latest Threw it working, Lost or Donated it ‘just in someone Ot Still Phone technology/ Given Work Deteriorated/ Model/ New/ $0 up front phone/ gift/ related/ Upgrading Date away but kept it stolen Traded-in to Charity Sold it Recycled it case’ else using it not working/ iPhone/ expired with new Phone lost/ someone supplied by from CDMA Needed a Date broke smartphone contract contract stolen else bought employer network phone Other Mar-05 9.0% 16.0% 8.0% 4.0% 1.0% 0.0% 4.0% 26.0% 18.0% 4.0% Mar-06 5.0% 13.0% 4.0% 4.0% 1.0% 0.0% 3.0% 39.0% 23.0% 4.0% Mar-05 19.0% 19.0% 6.0% 1.0% 3.0% 3.0% 6.0% 29.0% 12.0% Mar-07 3.0% 16.0% 4.0% 2.0% 1.0% 0.0% 4.0% 38.0% 22.0% 6.0% Mar-06 24.3% 31.6% 17.7% 10.3% 4.6% 2.6% 2.3% 2.8% 5.7% Jun-07 4.0% 14.0% 4.0% 1.0% 0.0% 0.0% 4.0% 41.0% 22.0% 3.0% Mar-07 25.8% 30.0% 15.8% 10.1% 4.3% 3.3% 3.0% 4.3% 2.3% 1.0% Feb-08 4.0% 12.0% 5.0% 1.0% 0.0% 0.0% 6.0% 38.0% 19.0% 7.0% Jun-07 26.0% 27.4% 16.0% 11.9% 4.6% 5.6% 1.2% 3.5% 2.6% 1.4% Feb-09 2.0% 16.0% 4.0% 1.0% 1.0% 0.0% 9.0% 37.0% 16.0% 9.0% Feb-08 25.0% 23.0% 17.0% 11.0% 5.0% 4.0% 2.0% 5.0% 2.0% 5.0% Feb-10 3.0% 15.0% 3.0% 2.0% 0.0% 1.0% 6.0% 40.0% 14.0% 12.0% Feb-09 22.0% 22.0% 18.0% 11.0% 5.0% 1.0% 4.0% 4.0% 3.0% Feb-11 4.0% 17.0% 3.0% 2.0% 0.0% 2.0% 8.0% 37.0% 15.0% 9.0% Feb-10 26.0% 29.0% 19.0% 12.0% 4.0% 2.0% 1.0% 3.0% 1.0% 3.0% Nov-11 2.0% 15.0% 4.0% 2.0% 1.0% 2.0% 10.0% 39.0% 16.0% 5.0% Feb-11 21.0% 31.0% 23.0% 8.0% 4.0% 3.0% 1.0% 2.0% 1.0% 6.0% Dec-12 3.0% 17.0% 3.0% 2.0% 1.0% 2.0% 9.0% 40.0% 16.0% 4.0% Nov-11 24.0% 34.0% 17.0% 9.0% 4.0% 4.0% 1.0% 4.0% 3.0% 1.0% Jan-14 3.0% 14.0% 2.0% 2.0% 1.0% 4.0% 13.0% 37.0% 14.0% 5.0% Dec-12 26.0% 35.0% 19.0% 7.0% 3.0% 3.0% 1.0% 1.0% 0.0% Feb-15 2.0% 15.0% 2.0% 2.0% 1.0% 4.0% 12.0% 38.0% 12.0% 8.0% Jan-14 24.0% 33.0% 16.0% 8.0% 3.0% 0.0% Feb-15 23.0% 20.0% 16.0% 5.0% 3.0% 15.0%

3.11 WHAT ARE YOU PLANNING TO DO WITH YOUR CURRENT PHONE WHEN YOU GET A NEW PHONE?

3.7 BRAND OF CURRENT MOBILE PHONE Keep it just in Give it to Donated it Throw it Date case someone else Recycle it Traded-in to Charity Sell it away Don’t know Date iPhone Samsung Nokia HTC Other LG Sony Huawei Motorola Blackberry ZTE Mar-05 22.0% 39.0% 8.0% 6.0% 1.0% 0.0% 6.0% 8.0% Nov-11 21.0% 16.0% 33.0% 7.0% 4.0% 6.0% 5.0% 1.0% 3.0% 2.0% 1.0% Mar-06 28.9% 30.1% 11.5% 3.4% 0.9% 0.0% 2.3% 22.9% Dec-12 24.0% 26.0% 23.0% 7.0% 4.0% 4.0% 4.0% 2.0% 3.0% 2.0% 1.0% Mar-07 32.2% 24.5% 17.8% 5.1% 0.4% 0.0% 1.5% 18.4% Jan-14 33.0% 28.0% 16.0% 5.0% 5.0% 4.0% 4.0% 2.0% 1.0% 1.0% 1.0% Jun-07 36.7% 21.2% 17.0% 3.0% 0.0% 0.0% 1.3% 19.9% Feb-08 43.0% 17.0% 21.0% 3.0% 1.0% 0.0% 1.0% 14.0% Feb-15 34.0% 33.0% 12.0% 5.0% 0.0% 5.0% 4.0% 2.0% 1.0% 0.0% 1.0% Feb-09 41.0% 16.0% 24.0% 4.0% 0.0% 0.0% 1.0% 13.0% Feb-10 35.0% 19.0% 25.0% 4.0% 1.0% 0.0% 2.0% 14.0% Feb-11 35.0% 21.0% 21.0% 2.0% 2.0% 5.0% 1.0% 14.0% Nov-11 30.0% 19.0% 26.0% 3.0% 2.0% 3.0% 1.0% 17.0% 3.8 WHERE ARE PEOPLE BUYING THEIR PHONES FROM? Dec-12 28.0% 18.0% 27.0% 2.0% 1.0% 3.0% 1.0% 19.0% Jan-14 28.0% 19.0% 27.0% 2.0% 1.0% 6.0% 1.0% 15.0% Electronics Store i.e. Discount Feb-15 26.0% 15.0% 27.0% 3.0% 1.0% 7.0% 1.0% 19.0% Dick Smith, stores/ Mobile phone JB Hi Fi supermarkets Don’t know/ gift - hand Date retailers Apple auspos ebay Online Other didn’t answer me down Work Overseas TOTAL

Nov-11 68.00% 5.0% 7.0% 2.0% 2.0% 2.0% 3.0% 8.0% 1.0% 0.0% 98.00% 3.12 NUMBER OF PHONES NOT IN CURRENT USE Dec-12 73.00% 6.0% 9.0% 1.0% 2.0% 3.0% 1.0% 4.0% 0.0% 1.0% 100.00%

Jan-14 64.00% 0.0% 9.0% 0.0% 0.0% 27.0% 0.0% 0.0% 0.0% 0.0% 100.00% Est. no. of phones Date None One % Two or more in storage Feb-15 55.00% 10.0% 3.0% 5.0% 3.0% 22.0% 0.0% 0.0% 0.0% 0.0% 98.00%

Mar-05 59.0% 22.0% 19.0% 12,069,891 Mar-06 33.0% 30.0% 38.0% 16,082,686 Mar-07 31.0% 33.0% 37.0% 15,685,512 3.9 WHEN DO PEOPLE BUY / RECEIVE THEIR NEW PHONE? Jun-07 31.0% 34.0% 36.0% 15,987,541 When When an previous Feb-08 33.0% 35.0% 32.0% 14,326,756 When I went updated phone Feb-09 36.0% 33.0% 32.0% 13,331,456 travelling In the Towards the When model was stopped Feb-10 33.0% 29.0% 38.0% 16,138,079 overseas Summer or end of the previous When I launched When my working for work or Boxing Day financial phone was started a On your (new contract properly/ Feb-11 32.0% 27.0% 40.0% 19,029,148 Date Other leisure sales year lost or stolen new job birthday At Christmas technology) was up broke Nov-11 33.0% 27.0% 40.0% 22,183,395 Dec-12 34.0% 29.0% 37.0% 23,254,888 Jan-14 30.0% 2.0% 2.0% 5.0% 0.0% 3.0% 5.0% 6.0% 20.0% 31.0% 0.0% Jan-14 35.0% 28.0% 37.0% 23,522,505 Feb-15 14.0% 1.0% 2.0% 3.0% 3.0% 5.0% 6.0% 7.0% 12.0% 25.0% 31.0% Feb-15 35.0% 29.0% 36.0% 22,255,662 59 60 Appendices Appendices

3.12 NUMBER OF PHONES NOT IN CURRENT USE (CONTINUED) 3.15 WHY ARE YOU NOT RECYCLING THE OLD PHONE THAT YOU KEPT?

Age of phones in Phones in storage - May be storage - Nov % working or not? % able to sell/ Other (lost Expensive it, easier May need it phone / Sentimental Didn’t know No Hand it to throw never / still works Paid good Keeping for Might be reasons Don’t know you could Not sure convenient down to outm gave Haven’t got Didn’t think replaced 1 year old 12% Yes, still working 61% Kept spare / has info money kids/to play able to Security / value / To use where to recycle what to do recycling friends/ it back to around to of it/ forgot phone or Date for backup in it for it with repair concerns really like it overseas recycle phone with it points family employer Don’t know it yet about it accessory 2 year old 23% No, not working 22% 3 year old 24% Unsure 17% Mar-05 19.0% 1.0% 26.0% 26.0% 14.0% 16.0% 3.0% 24.0% Mar-06 34.0% 4.0% 4.0% 47.0% 47.0% 12.0% 7.0% 6.0% 4 year old 41% Mar-07 44.0% 7.0% 0.0% 4.0% 0.0% 0.0% 0.0% 0.0% 9.0% 13.0% 8.0% 0.0% 0.0% 3.0% 6.0% 11.0% 0.0% Jun-07 60.0% 2.0% 0.0% 4.0% 0.0% 0.0% 0.0% 0.0% 11.0% 4.0% 2.0% 0.0% 0.0% 4.0% 2.0% 11.0% 0.0% Feb-08 57.0% 14.0% 0.0% 6.0% 0.0% 0.0% 0.0% 0.0% 9.0% 3.0% 2.0% 0.0% 0.0% 10.0% 3.0% 8.0% 0.0% Feb-09 61.0% 8.0% 0.0% 3.0% 0.0% 0.0% 0.0% 0.0% 9.0% 3.0% 1.0% 0.0% 0.0% 6.0% 3.0% 15.0% 0.0% Feb-10 45.0% 19.0% 0.0% 4.0% 0.0% 0.0% 0.0% 0.0% 10.0% 6.0% 0.0% 0.0% 0.0% 6.0% 6.0% 16.0% 0.0% Feb-11 43.0% 16.0% 3.0% 2.0% 3.0% 2.0% 0.0% 2.0% 6.0% 4.0% 1.0% 9.0% 4.0% 0.0% 7.0% 18.0% 0.0% Nov-11 41.0% 18.0% 2.0% 4.0% 1.0% 2.0% 0.0% 1.0% 6.0% 3.0% 2.0% 1.0% 3.0% 2.0% 6.0% 16.0% 0.0% Dec-12 37.0% 21.0% 2.0% 2.0% 2.0% 1.0% 2.0% 1.0% 7.0% 6.0% 3.0% 1.0% 3.0% 2.0% 7.0% 16.0% 0.0% 3.13 NUMBER OF PHONES IN AUSTRALIA HOUSEHOLDS Jan-14 36.0% 21.0% 2.0% 3.0% 2.0% 2.0% 1.0% 1.0% 8.0% 3.0% 3.0% 1.0% 4.0% 3.0% 7.0% 12.0% 0.0% Feb-15 49.0% 16.0% 6.0% 16.0% 5.0% 14.0% 2.0% 7.0% 5.0% 25.0% 10.0%

Total no. of Phones in Average no. of Shipments - no. No. Households phones in storage per phones in storage of MM member Total no. mobile Date in Aus Population storage in Aus household per capita imports imports 3.16 WHY DOES THE INFORMATION ON YOUR UNUSED PHONE STOP YOU FROM RECYCLING IT?

Mar-05 7,624,589 20,126,600 12,069,891 1.58 0.60 Mar-06 7,780,193 20,398,100 16,082,686 2.07 0.79 8406642 9525714 I am worried if I recycle my mobile I don’t believe the I don’t know how I don’t know how Jun-07 7,918,131 20,827,600 15,987,541 2.02 0.77 8679094 10231520 I might need the phone someone else information will be to delete the to save/ transfer information at a may access and use destroyed in the information off the the data to my new Feb-08 8,059,394 21,148,900 14,326,756 1.78 0.68 9675482 11495358 Date later date my information recycling process phone phone or computer Other Feb-09 8,202,886 21,601,700 13,331,456 1.63 0.62 9026572 11148806 Feb-10 8,349,896 21,964,100 16,138,079 1.93 0.73 8664111 11992400 Nov-11 37.0% 57.0% 20.0% 19.0% 21.0% 9.0% Feb-11 8,419,972 22,268,800 19,029,148 2.26 0.85 8703384 13348293.85 Dec-12 37.0% 64.0% 24.0% 24.0% 31.0% 3.0% Nov-11 8,498,668 22,520,300 22,183,395 2.61 0.99 7796532 12784881 Jan-14 33.0% 69.0% 33.0% 22.0% 22.0% 5.0% Dec-12 8,748,410 22,920,800 23,254,888 2.66 1.01 6667937 11971921 Feb-15 42.0% 66.0% 29.0% 22.0% 21.0% 4.0% Jan-14 8,918,310 23,406,900 23,522,505 2.64 1.00 6204913 11225341 Feb-15 9,093,668 23,832,271 22,255,662 2.45 0.93 5615312 12777973.52 From ABS From Ipsos From Ipsos From MPIRP From MPIRP 3.17 HOW LIKELY ARE YOU TO RECYCLE YOUR MOBILE PHONE?

Date Definitely will Probably will Might/Might not Probably not Definitely not 3.14 IF STORING HOW LONG DO YOU EXPECT TO KEEP YOUR PHONE FOR? Mar-06 20.0% 25.0% 40.0% 12.0% 3.0% Date Under 6 months 6 - 11 months 12 - 18 months 19 - 24 months 2+ years Don’t know Mar-07 25.4% 20.7% 38.8% 12.0% 3.1% Jun-07 22.8% 19.8% 38.8% 14.3% 4.3%

Mar-06 5.0% 10.0% 17.0% 7.0% 20.0% 42.0% Feb-08 27.0% 21.0% 33.0% 15.0% 4.0%

Mar-07 5.5% 11.1% 20.0% 11.2% 21.4% 30.9% Feb-09 36.0% 20.0% 30.0% 11.0% 2.0%

Jun-07 5.0% 8.2% 24.9% 11.9% 22.1% 27.9% Feb-10 35.0% 22.0% 30.0% 11.0% 2.0%

Feb-08 2.0% 5.0% 16.0% 10.0% 28.0% 39.0% Feb-11 30.0% 20.0% 34.0% 12.0% 4.0%

Feb-09 6.0% 9.0% 14.0% 14.0% 22.0% 36.0% Nov-11 37.0% 19.0% 31.0% 10.0% 4.0%

Feb-10 4.0% 10.0% 17.0% 12.0% 21.0% 36.0% Dec-12 37.0% 19.0% 30.0% 10.0% 4.0%

Feb-11 3.0% 11.0% 16.0% 9.0% 27.0% 34.0% Jan-14 34.0% 16.0% 32.0% 12.0% 5.0%

Nov-11 3.0% 14.0% 19.0% 10.0% 20.0% 34.0% Feb-15 35.0% 18.0% 32.0% 11.0% 4.0%

Dec-12 4.0% 8.0% 21.0% 12.0% 21.0% 34.0%

Jan-14 3.0% 8.0% 14.0% 12.0% 24.0% 39.0%

Feb-15 3.0% 9.0% 19.0% 9.0% 25.0% 35.0% 61 62 Appendices Appendices

3.18 HAVE YOU EVER RECYCLED ANY PART OF AN OLD MOBILE PHONE? 3.21 HOW MUCH ENVIRONMENTAL BENEFITS ENCOURAGE RECYCLING - DEFINITELY & MIGHT (%)

Head set / hands Date Battery Phone Handset Charger SIM Card free Case Other

Mar-06 77.0% 54.0% 52.9% 28.7% 6.9% 4.6% 4.6% Mar-07 76.4% 58.8% 53.1% 34.3% 4.7% 8.2% 1.5% Jun-07 80.0% 61.0% 50.0% 26.0% 5.0% 2.0% Feb-08 81.0% 73.0% 58.0% 19.0% 1.0% 1.0% 9.0% Feb-09 80.0% 74.0% 48.0% 23.0% 0.0% 0.0% 7.0% Feb-10 82.0% 70.0% 49.0% 15.0% 1.0% 1.0% 4.0% Feb-11 77.0% 76.0% 44.0% 21.0% 2.0% 2.0% Nov-11 73.0% 75.0% 51.0% 16.0% 0.0% 2.0% Dec-12 81.0% 83.0% 52.0% 13.0% 3.0% 1.0% Jan-14 77.0% 84.0% 55.0% 17.0% 1.0% 1.0% Feb-15 72.0% 81.0% 58.0% 15.0% 0.0% 0.0%

3.19 HOW MUCH AWARENESS ENCOURAGES RECYCLING - DEFINITELY (%)

3.20 AWARENESS OF MOBILE PHONE RECYCLING 3.22 HOW MUCH ACCESS ENCOURAGES RECYCLING - DEFINITELY (%)

Date Total Sydney Melbourne Adelaide Perth Brisbane Rural

Mar-05 46% Mar-06 54.2% 53.8% 58.8% 51.3% 43.4% Mar-07 66.8% 67.5% 69.1% 65.0% 60.7% Jun-07 79.0% 79.3% 78.3% 80.6% 76.3% Feb-08 75.0% 71.0% 77.0% 79.0% 79.0% Feb-09 79.0% 79.0% 79.0% 82.0% 80.0% Jun-09 76.0% 79.0% 80.0% 88.0% 73.0% Nov-09 77.0% 77.0% 81.0% 85.0% 82.0% 65% 75% Feb-10 79.0% 79.0% 79.0% 83.0% 77.0% Feb-11 84.0% 84.0% 83.0% 85.0% 83.0% Nov-11 82.0% 81.0% 76.0% 78.0% 80.0% 81.0% Dec-12 83.0% 80.0% 86.0% 81.0% 79.0% 85.0% Jan-14 80.0% 77.0% 78.0% 74.0% 78.0% 82.0% Feb-15 78.0% 76.0% 82.0% 80.0% 72.0% 73.0% 63 64 Appendices Appendices

3.23 LIKELIHOOD TO RECYCLE AT THE FOLLOWING OUTLETS - VERY AND SOMEWHAT LIKELY (%)

3.25 HOW MUCH CHARITY BENEFITS ENCOURAGE RECYCLING - DEFINITELY & MIGHT (%)

3.24 HOW MUCH PERSONAL FINANCIAL INCENTIVES ENCOURAGE RECYCLING - DEFINITELY & MIGHT (%) 65 66 Appendices Appendices

3.26 ESTIMATED NUMBER OF BATTERIES AND HANDSETS RECEIVED (DERIVED BY DIVIDING WEIGHT Period NiCd NimH Lithium Ion Lead BY AVERAGE UNIT WEIGHTV PER ANNUM) 1998/00 77% 20% 2% 1% 2000/01 39% 44% 10% 7% Numbers NiCd NimH Lithium Ion Lead Total Batteries Handsets Total 2001/02 34% 46% 13% 7% 2002/03 46% 32% 12% 10%

1998/00 161,783 68,840 13,175 635 244,433 13,044 257,478 2003/04 24% 34% 13% 29% 2004/05 32% 34% 15% 20% 2000/01 37,483 68,933 28,900 4,040 139,357 65,556 204,912 2005/06 16% 26% 37% 22% 2001/02 41,333 90,427 49,050 4,885 185,695 182,144 367,839 2006/07 19% 36% 34% 10% 2002/03 66,950 74,540 52,775 8,760 203,025 100,033 303,058 2007/08 11% 40% 46% 2% 2008/09 7% 36% 54% 2% 2003/04 30,825 69,240 50,125 22,605 172,795 92,944 265,739 2009/10 7% 30% 62% 1% 2004/05 59,400 100,640 84,225 22,365 266,630 68,978 335,608 2010/11 7% 26% 66% 1% 2005/06 21,000 58,471 224,462 17,660 321,593 69,481 391,074 2011/12 3% 17% 79% 1% 2012/13 4% 14% 81% 1% 2006/07 30,225 96,143 246,538 9,190 382,096 194,543 576,640 2013/14 3% 12% 84% 2% 2007/08 14,564 109,515 295,966 2,275 422,320 332,877 755,196 2014/15 2% 9% 88% 1% 2008/09 7,085 78,524 329,911 2,010 417,529 387,829 805,358 Percentage of batteries collected by chemical type. 2009/10 8,055 67,557 399,801 1,035 476,449 324,800 801,249 2010/11 8,912 59,087 482,180 1,158 551,337 428,074 979,411

2011/12 4,528 34,518 493,951 905 533,902 441,788 975,690 Av Batt Wt GSM (av LiIon +hset Period NiCd (kg) NimH (kg) Lithium Ion (kg) Lead (kg) (kg) and cdma) (kg) (kg) 2012/13 4,827 34,986 524,907 932 565,652 431,222 996,874 2013/14 3,593 25,642 537,145 1,202 567,582 421,363 988,945 Av wght ( til Jun 05) 0.120 0.075 0.040 0.200 0.109 0.090 0.2 2014/15 3,172 21,057 533,807 863 558,900 388,465 947,365 Av wght (after Jun 05) 0.120 0.070 0.026 0.200 0.104 0.081 0.107

Total Numbers 503,736 1,058,120 4,346,917 100,521 6,009,294 3,943,143 9,952,437 Av wght for year (at 30 Jun 07) 0.154 0.069 0.027 0.200 0.113 0.083 0.110 Av wght for year (30 june 08) 0.140 0.068 0.029 0.200 0.109 0.081 0.110 Av wght for year (30 june 09) 0.177 0.077 0.028 0.200 0.121 0.082 0.110 Av wght for year (30 June 10) 0.143 0.072 0.025 0.200 0.110 0.090 0.115 Av wght for year (31 March11) 0.130 0.077 0.024 0.200 0.108 0.073 0.097 3.27 BATTERY AND COMPONENT PERCENTAGES AND WEIGHTS BEING RECYCLED Av wght for year (30 June 12) 0.116 0.073 0.024 0.200 0.103 0.076 0.100 Av weight for year (30 June 13) 0.119 0.065 0.024 0.200 0.102 0.076 0.100 Period Batteries Handsets Accessories Av weight for year (30 June 14) 0.113 0.072 0.025 0.200 0.103 0.075 0.101 Av weight for year (30 June 15) 0.103 0.069 0.027 0.200 0.100 0.079 0.105 1998/00 92% 4% 4% 2000/01 35% 18% 47% Average unit weight (kg) of components received for recycling (note handset does NOT include battery). 2001/02 22% 24% 54% 2002/03 35% 18% 46% 2003/04 29% 16% 55% 3.28 TYPES OF HANDSETS BEING RECYCLED BY WEIGHT (KG) 2004/05 43% 12% 45% 2005/06 38% 13% 48% Analogue CDMA GSM Total 2006/07 24% 20% 56% 2007/08 19% 28% 53% 2005-6 526 1,005 4,097 5,628 2008/09 14% 26% 60% 2006-7 668 4,081 9,044 13,793 2009/10 16% 28% 56% 2007-8 574 8,066 18,313 26,953 2010/11 16% 29% 54% 2008-9 593 5,907 25,413 31,913 2011/12 16% 35% 50% 2009-10 596 2,916 25,720 29,232 2012/13 18% 38% 44% 2010-11 865 2,202 27,969 31,035 2013/14 20% 40% 40% 2011-12 98 413 33,065 33,576 2014/15 22% 41% 37% 2012-13 84 327 32,408 33,576 2013-14 65 334 31,362 32,818 Total 23% 27% 49% 2014-15 46 273 30,173 31,761 Author: Rose Read Manager Recycling AMTA

MobileMuster – Acknowledgements The only not-for-profit government accredited The AMTA would like to thank the following people for their contributions in editing, proofing and reviewing the document Julia Diamond, Larissa Shashkof, Spyro Kalos mobile phone recycling and Glenn Brown from AMTA; Helen Lewis (Principal, Helen Lewis Research); program in Australia. An John Gertsakis (Chief Sustainability Officer from Infoactiv); Associate Professor initiative of the Australian Damien Giurco (Research Director, UTS Institute of Sustainable Futures); Ben Brown Mobile Telecommunications and Laura Shepherd from IPSOS; Claire Maloney and Alexandra McDonald from Association (AMTA). The Bravery; Scott Matyus-Flynn, Rachel Strobridge and the Design Team at The Republic of Everyone.

CONTACT US www.mobilemuster.com.au 1300 730 070 +61 2 8920 3555 [email protected]

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Australian Mobile PRODUCT STEWARDSHIP Telecommunications Association © Australian Government Accredited Australian Mobile PO Box 4309 Manuka, Telecommunications Association ACT Australia 2603 Written by Rose Read, Manager ABN: 98 065 814 315 Recycling, AMTA Edited by The Bravery Like us on Facebook/ Graphic Design by The Republic of Everyone mobilemuster Printed on 250gsm & 110gsm Managed by the Australian Ecostar 100% Recycled Uncoated Mobile Telecommunications Follow us on Twitter/ ISBN 978 0 646 94660 3 Association mobilemuster1 October 2015